Bloombery ends dispute with GGAM
Subsidiaries of Enrique Razon’s Bloomberry Resorts Corp. have ended their decadelong dispute with casino management firm Global Gaming Philippines LLC (GGAM), reaching a universal settlement which includes a $300 million special block sale.
In a stock exchange filing, Bloomberry said its subsidiaries Sureste Properties Inc. (SPI) and Bloomberry Resorts and Hotels Inc. (BRHI) have reached an agreement for a universal settlement of their dispute with GGAM.
The company said the universal settlement would cover all the pending cases between the parties.
This includes the arbitral award issued against SPI and BRHI in favor of GGAM and GGAM Netherlands relating to the termination of GGAM’s management services agreement, as well as the judgment of various Singapore courts relating to the confirmation of the arbitral award in favor of GGAM and GGAM Netherlands.
“This settlement will put an end to the dispute of SPI and BRHI with GGAM which has dragged on for 10 years,” Bloomberry said.
Further, the settlement with GGAM requires SPI to purchase the 921.18 million shares in Bloomberry held by GGAM for a total purchase price of $300 million.
Bloomberry said the agreed purchase price would amount to P18.32 per share at the conversion rate of P56 to $1.
The purchase will be made through a special block sale through the Philippine Stock Exchange (PSE).
According to Bloomberry, the settlement is contingent on the lifting of the writ of preliminary injunction and attachment on the GGAM shares in company issued by the Regional Trial Court of Makati.
It is also subject to the lifting of Philippine Depository and Trust Corp. of all suspensions and restrictions on transactions in the shares and a PSE approval of the special block sale.
Bloomberry is the owner and operator of Solaire Resort Entertainment City.
The company is set to formally open its second integrated resort, Solaire Resort North, in late May this year.
Solaire Resort North is a $1 billion investment spanning 1.3 hectares in Quezon City.
Bloomberry expects the new resort to solidify Solaire’s position as a leader in luxury entertainment, while offering an elevated resort experience to clientele in the metropolis’ northern areas.
Razon, chairman and CEO of Bloomberry, said the company hopes the property’s presence and operation will support Quezon City’s endeavors to enhance and promote tourism, generate employment for Filipinos and further attract opportunities for economic and social investments.
“At the same time, we anticipate that our presence in Quezon City will positively impact our growth, widen our market footprint and reinforce our brand’s strength,” Razon said.
“We are excited and proud to share our new property and resort,” he added.
Solaire Resort North features 526 opulent guest rooms and suites, 2,669 electronic gaming machines and 163 tables across four casino levels.
Bloomberry said a special feature of the resort is a curated art program and display comprised of celebrated names in the local and international art scenes, providing highlights to the resort’s spaces.
“With Solaire Resort North, we uphold the same mission in the hope that the property’s presence and operation will support Quezon City’s endeavors to enhance and promote tourism, generate employment for Filipinos and further attract opportunities for economic and social investments. At the same time, we anticipate that our presence in Quezon City will positively impact our growth, widen our market footprint and reinforce our brand’s strength,” he said.