Bloomberry Resorts Corp., operator of Solaire Resorts and Casino led by ports magnate Enrique Razon, said it won the arbitration case filed against it by Las Vegas-based casino management service provider, Global Gaming Philippines LLC (GGAM).
In a disclosure to the Philippine Stock Exchange, Bloomberry said its subsidiaries Bloomberry Resorts and Hotels Inc. (BRHI) and Sureste Properties Inc. (SPI) received a notice from the Singapore arbitration tribunal in relation to the sale of Global Gaming’s 8.7-percent ownership in the Razon-led company.
Bloomberry said the tribunal denied Global Gaming’s requests to declare full ownership of the subject 921.18 million shares of the listed company and its subsidiaries and to enjoin BRHI, SPI, Prime Metroline Holdings Inc. (PMHI) and other subsidiaries from taking any actions that would interfere with the sale of shares.
However, the tribunal mandated that Global Gaming can “freely” deal with and/or sell the shares, making no declaration as to the ownership of the same.
Following the announcement, Bloomberry shares plunged 8.32 percent to P11.24 each from Wednesday’s close of P12.26 on concerns that GGAM might unload the shares over a short period of time at a discount.
GGAM is the local unit of Global Gaming Asset Management, an international management service provider operating casinos in Las Vegas, Macau and Singapore.
BHRI is a license holder in Entertainment City where Solaire is located and operates Solaire’s casino business, while SPI is in charge of the hotel business.
In 2012, Bloomberry subsidiaries BRHI and SPI entered into a five-year deal with GGAM to own 10 percent of Prime Metroline’s stake in the Razon-led company, which GGAM exercised before that year ended.
The contract authorized GGAM to manage Solaire’s casino operations.
Bloomberry later moved to terminate the deal, saying GGAM breached the terms of the contract, resulting in the management service provider to file an arbitration case in Singapore.
Bloomberry swung to a net profit of P3.3 billion in the first nine months of the year from a net loss of P868 million a year earlier, boosted by sales from Solaire which opened in 2013. Its revenues likewise rose 127 percent to P22.4 billion from the previous year’s P9.9 billion.
Solaire Resorts & Casino is the first integrated resorts, hotels, and casino development within the Bagong Nayong Pilipino Entertainment City complex in Paranaque City, among the four integrated casino developments in the area.
The ongoing three casino sites within the Entertainment City include the $1.1-billion Resorts World Bayshore of Andrew Tan-led Travellers International Hotel Group Inc., the Sy Group’s $680-million City of Dreams Manila, and The Manila Bay Resorts of Tiger Resorts and Entertainment Inc. (a subsidiary of Japan-based Universal Entertainment Corp).
Formerly Active Alliance Inc., Bloomberry was incorporated in 1999, and had changed its corporate name into its present one in 2012.