Dennis Uy resumes search for casino project partners
Davao-based businessman Dennis Uy will seek other investors to save his casino business after ports and casino tycoon Enrique Razon backed out of a planned partnership.
In separate disclosures yesterday, Razon’s Bloomberry Resorts Corp. and Uy’s PH Resorts Group said their deal is off after the Razon Group considered the results of due diligence on the target companies and the projects.
The term sheet covers Bloomberry’s supposed investment in Uy’s Lapulapu Leisure Inc. and Clark Grand Leisure Corp. and their respective casinos in Cebu and Clark.
Uy’s PH Resorts Group, through its subsidiary PH Travel and Leisure Holdings Corp. and Bloomberry signed the term sheet in May last year.
“The term sheet was the basis for a proposed investment into PHR’s subsidiaries, Lapulapu Leisure Inc. and Clark Grand Leisure Corp, with their Emerald Bay and Clark integrated resorts projects, respectively,” PH Resort said.
PH Resorts president Raymundo Martin Escalona said the termination would allow both parties to pursue new plans.
“While it is unfortunate that a deal was not closed, this now allows both parties to pursue their own plans. This development gives PHR the opportunity to re-enter into discussions with other parties that were previously put on the backburner due to the contemplated investment by Bloomberry.”
PH Resorts will make the necessary disclosures to the public on developments of their discussions with the other parties at the appropriate time, Escalona said.
Emerald Bay Resort is PH Resort’s flagship project. Construction commenced in December 2017 with a target opening set next year.
Clark Grand Leisure, meanwhile, was developing The Base Resort Hotel and Casino in Clark integrated resort and casino project in Clark Global City in the Clark Freeport Zone, Pampanga before the pandemic hit.
In October 2020, Uy voluntarily suspended the development of the The Base Resort “due to lingering uncertainties surrounding the casino gaming industry, especially with more competition in the Clark, Pampanga location.”
For the nine months ended September 30, 2022 and 2021, PH Resorts reported a net loss of P549.3 million and P376.3 million, respectively, resulting in a deficit of P2.02 billion and P1.4 billion, respectively, primarily due to ongoing construction activities at Emerald Bay.