Bloomberry Resorts concludes settlement with GGAM

RAZON-LED Bloomberry Resorts Corp. completed its settlement agreement with casino management company Global Gaming Asset Management LLC (GGAM) after executing a P16.78-billion block sale on Tuesday.

“On April 30, Sureste Properties, Inc. (SPI) purchased 921,184,056 Bloomberry shares from GGAM at a purchase price of P18.22 per share through a special block sale through the Philippine Stock Exchange pursuant to the settlement agreement,” Bloomberry said in a regulatory filing.

“The settlement agreement is therefore completed,” it added.

In March, Bloomberry announced that its subsidiaries SPI and Bloomberry Resorts and Hotels, Inc. (BRHI) settled the decade-long dispute with GGAM. The settlement agreement required SPI to purchase shares in Bloomberry held by GGAM.

The agreement comprised of a universal agreement covering all pending cases involving the parties.

GGAM was the former partner of Bloomberry in managing Solaire Resort Entertainment City in Parañaque.

In 2013, Bloomberry ended its management deal after the Razon-led company claimed that GGAM was unable to deliver on the terms specified in the contract.

In 2019, a Singapore arbitration court mandated Bloomberry to pay $296 million to GGAM, which was disputed by the listed integrated resort operator.

Bloomberry also owns and manages Solaire Resort North in Quezon City and Jeju Sun Hotel & Casino in South Korea, alongside Solare Resort Entertainment City.

Enrique K. Razon, Jr., Bloomberry’s chairman and chief executive officer, previously said that the operations of Solaire Resort North are expected to be fully scaled up by 2026, two years after its opening on May 25.

Solaire Resort North is a $1-billion integrated resort that has 526 guest rooms and suites, 2,669 electronic gaming machines, and 163 tables across four casino levels.

The company recorded an 85% growth in its 2023 net income to P9.5 billion. Its consolidated net revenue rose by 24% to P48.4 billion.

On Tuesday, Bloomberry shares dropped by 1.88% or 20 centavos to P10.40 apiece. — Revin Mikhael D. Ochave