LISTED Belle Corporation will pay gaming firm Leisure and Resorts World Corporation (LRWC) P5.09 billion for its stake in casino complex City of Dreams Manila which Belle operates.
In a disclosure to the Philippine Stock Exchange on Friday, the Belle Group said it signed an agreement with the LRWC Group to enable the latter to realize its interest under its existing agreements with Belle in line with the operations of City of Dreams Manila.
The Belle Group is composed of Belle Corp. and PremiumLeisure and Amusement Inc. while the LRWC Group also includes AB Leisure Global Inc.
Belle said it paid the LRWC Group P1.018 billion upon the signing of the agreement on November 3, and that it will pay the balance at the end of March 2017.
“The proceeds from the transaction are intended to be utilized by the LRWC Group on its core businesses,” Belle said.
In March 2013, the LRWC Group entered into agreements with the Belle Group granting LRWC up to 30 percent interest in the Belle Group’s net revenues under its lease and licensee agreements for City of Dreams Manila.
The Belle Group’s stake in the City of Dreams Manila is held through its subsidiary PLC, which has an operating agreement with Melco Crown Entertainment Limited that accords it a share of gaming revenues or earnings from the said casino.
“Under the terms of this newly signed agreement, the LRWC Group will be able to finalize its transaction with the Belle Group by the end of March 2017,” Belle said.
Once the transaction is completed, the agreements made last March 2013 between the Belle Group and the LRWC Group will be deemed terminated, the two companies said.
Belle Corp is engaged in property development and casino operations while LRWC caters to the gaming industry.