Bloomberry Resorts, Global Gaming Settle Decade-Old Battle with $300M Deal
LISTEN TO THIS ARTICLE:After a protracted decade-long battle, Bloomberry Resorts Corp announced a significant breakthrough on Tuesday. The Philippine casino operator said in a filing with the Philippine Stock Exchange that it has reached an agreement with Global Gaming Asset Management LLC (GGAM) to settle multiple ongoing disputes.
Closing the Door
The settlement terms require Sureste Properties Inc, a Bloomberry subsidiary, to purchase 100% of the Bloomberry shares GGAM, a casino management firm with which Bloomberry previously had a partnership, now holds. The total value of the deal, based on current market prices, amounts to $300 million.
Related: Bloomberry Resorts Cleared of Wrongdoing in Cyberattack LawsuitAt a conversion rate of PHP18.32 (US$0.33) per share, this transaction involves a substantial 921,184,056 shares. The buy-and-sell process will occur through a special sale facilitated by the Philippine Stock Exchange.
Bloomberry clarified that this settlement will resolve all pending cases between it and GGAM. Notably, this also encompasses a US case in which Bloomberry chairman Enrique Razon was also listed as a defendant.
The settlement extends to court cases in both the Philippines and Singapore. Additionally, it aims to nullify a $296.6-million award issued by a Singapore-based arbitration tribunal in favor of GGAM. Bloomberry had been challenging this award in court.
The underlying dispute revolves around the early termination of a management services agreement related to the gaming facilities at the Solaire Resort and Casino in Manila. This agreement had existed between several Bloomberry units and entities associated with GGAM, which is linked to former casino executive William Weidner.
Looking Ahead
Solaire, which opened its doors in March 2013, remains a prominent player in the Philippine gaming landscape. As Bloomberry settles this long-standing feud, it can now focus on its upcoming venture: the formal opening of its second integrated resort, Solaire Resort North, slated for late May of this year.
With a $1 billion investment spanning 1.3 hectares in Quezon City, Solaire Resort North aims to solidify Solaire’s position as a leader in luxury entertainment. Its focus is on attracting high-end clientele in the metropolis’ northern areas.
Bloomberry’s chairman and CEO, Enrique Razon, expressed optimism about the new property’s impact on Quezon City’s tourism, employment generation, and economic growth. As the company expands its footprint, Solaire Resort North is poised to reinforce the brand’s strength and elevate the resort experience for patrons.
With this settlement, Bloomberry can now turn the page on a decade of legal wrangling and focus on its future endeavors in the Philippine gaming industry.
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