After a protracted legal battle spanning a decade, Bloomberry Resorts Corp. has resolved its dispute with Global Gaming Philippines LLC (GGAM), a former management entity of Solaire Resorts & Casino, through a $300-million (P16.8-billion) settlement.
In accordance with the agreement, the company led by tycoon Enrique Razon Jr. announced on Tuesday that Sureste Properties Inc. (SPI) would acquire 921.18 million shares of Bloomberry’s parent company at P18.32 per share. This acquisition accounts for 8.1 percent of Bloomberry’s total outstanding shares held by GGAM.
Following the announcement, shares of the resort and casino operator experienced an 8.7 percent decline to P10.50 per share on Tuesday, reflecting the market’s assessment of the settlement cost.
The buyout will be executed through a special block sale at the Philippine Stock Exchange (PSE), as confirmed by Bloomberry.
“This settlement will bring closure to the longstanding dispute between SPI and BRHI (Bloomberry Resorts and Hotels Inc.) with GGAM, which has endured for a decade,” Bloomberry stated in its disclosure.
COL Financial analyst Richard Laneda clarified that the transaction does not constitute a share buyback and will be recorded as an investment.
