Bloomberry to sell Jeju casino property
MANILA, Philippines – Bloomberry Resorts Corporation, the integrated casino and resort developer owned by businessman Enrique Razon Jr, reported that it is selling its Jeju casino property in South Korea.
"Bloomberry Resorts Corporation and Iao Kun Group Holding Company Limited hereby jointly announce that their respective subsidiaries have signed an agreement on the sale by Solaire Korea Company Limited of its 96.23% shareholding in Golden & Luxury Company Limited (G&L) - the owner and operator of the Jeju Sun Hotel & Casino in Jeju Island, South Korea," Bloomberry told the Philippine Stock Exchange on Thursday, June 23.
The agreement is subject to several conditions including the satisfactory results of a due diligence that Iao Kun will conduct on the shares to be sold, G&L, and its assets and business.
It is also subject to the approval of other government authorities. (READ: Razon plans to build hotel, casino in Quezon City)
The purchase price for the shares and the shareholder’s loan is about $102.29 million (P4.75 billion).
Other details will be disclosed if and when the transaction is completed within the next 45 days.
"Iao Kun desires to enter into the Jeju market and is confident that it can attract its Chinese VIP customers to Jeju Island. Solaire Korea, on the other hand, intends to focus its effort on the development of its property in Muui and Silmi Islands," Bloomberry said.
Iao Kun Group is a holding company which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter. The company is entitled to receive all of the profits of the VIP gaming promoters from VIP gaming rooms.
Analysts said the move to sell Bloomberry's assets in Jeju Island will help eliminate the financial drag into its operations.
Jeju Sun Hotel & Casino, which is 5 minutes away from Jeju International Airport, has hotel 208 rooms and suites, 2,125 square meters of gaming space, and other hotel facilities.
The hotel and casino complex was reopened last September after implementing first phase of a multi-stage refurbishment plan.
Under Solaire Korea's management, the newly renovated casino has been equipped with the latest state-of-the-art table games and electronic gaming equipment for the exclusive use of foreign guests.
The share price of Bloomberry on Thursday closed lower by 1.01% to P5.90 per share. – Rappler.com