- Legal States
Julie Moraine May 11, 2022 2 min read
Razon’s Bloomberry to Invest in Two Casino Properties
Bloomberry Resorts Corporation, the gaming and hospitality operator owned by Enrique Razon, announced today that it had filed with the Securities and Exchange Commission (SEC) of the Philippines to inform the regulator about material changes related to an agreement with PH Travel and Leisure Corp.
Expanding Razon’s Casino Footprint
The filing under Securities Regulation Code (SRC) Rule 17 and Sections 4.1 and 4.4 of the Revised Disclosure Rules revealed that Bloomberry Resorts signed a Term Sheet with PH Travel and Leisure, a subsidiary of PH Resorts Group Holdings, on May 6, 2022.
Subject to several conditions to closing of the Term Sheet, Bloomberry Resorts proposed to invest in two subsidiaries of PH Travel and Leisure, Lapulapu Leisure, Inc. and Clark Grand Leisure Corp.
Lapulapu is currently developing the Emerald Bay Resort Hotel and Casino in Punta Engano in Lapu-Lapu City in Cebu, while Clark Grand is developing The Base Resort Hotel and Casino in Clark in Pampanga.
Closing conditions include the execution of mutually acceptable definitive agreements, obtaining approvals from regulators and creditors, completion of audited financial statements, corporate approvals, due diligence, and others.
Bloomberry also informed SEC that “certain terms and conditions of the transaction, including the method of payment and timing of closing are still to be finalized,” adding that the company would provide further disclosures to address the transaction’s projected impact on the business and the financial condition and operations of Bloomberry Resorts as soon as the closing conditions are satisfied and the parties signed the definitive agreements.
Positive Initial Market Reaction
When the news that the business led by billionaire and casino mogul Razon would invest in other casinos hit the wire, both Bloomberry Resorts and PH Resorts Group, trading under the BLBRF and PHR tickers on the Philippines Stock Exchange (PSE), attracted significant investor interest to buck the negative trend on the PSE by registering increases of 8% and 18%, respectively.
Last month, Bloomberry Resorts filed another disclosure with the SEC under SRC Rule 17 and SRC Rule 17.2 (c) to inform the commission about the outcome of its Annual Stockholders’ Meeting held on April 21, 2022.
At the meeting, the corporation approved elected company directors for the ensuing year, the audited financial statements for the year ended December 31, 2021, as well as the appointment of its external auditor.
Bloomberry Resorts’ stockholders also ratified and approved all acts, contracts, investments, and resolutions issued by the board of directors and management since last year’s annual stockholders’ meeting.