Bloomberry sells1.179-B shares to Global Gaming

MANILA, Philippines - Razon-led Bloomberry Resorts Corp. has approved the sale of 1.179 billion shares to Nevada-based casino operator Global Gaming Philippines LLC to raise as much as P9.73 billion.

In a disclosure to the Philippine Stock Exchange yesterday, Bloomberry said the offered shares, representing 11.25 percent of its outstanding capital, would be sold at a price ranging from P6.55 to P8.25 apiece.

The price would be set on May 3 and the shares would start trading on May 4.

Bloomberry shares closed at P11.64 yesterday, 34 percent higher from P11.60 Wednesday.

GGAM is an investor, developer and manager of casino resort properties based in Las Vegas. Its three principals each have decades of integrated tourism resort and gaming industry experience, a substantial portion of which was in senior management positions with Las Vegas Sands in the US and Macau.

GGAM was tapped by Bloomberry to provide management services to Solaire Manila, a $1.2-billion resort and gaming complex it is building along Roxas Boulevard.

To align the interest of GGAM with those of the owners of Solaire Manila, the foreign-based casino developer was granted the right to purchase up to 921.18 million shares, equivalent to 9.91 percent of outstanding shares of Boomberry (prior to any issuance of shares pursuant to the subscription), from Razon’s Prime Metroline at P1 per share plus $15 million assuming full exercise of the option or failing which, adjusted pro-rata. – Zinnia dela Peña

“This right of GGAM to purchase shares of the company from Prime Metroline will expire if it is not exercised by the date commercial operations of Solaire Manila commences,” Bloomberry said.

Construction of the first phase of Solaire Manila, the first casino complex to rise in Pagcor’s Entertainment City, is targeted for completion in the fourth quarter this year.

Phase 1 of the project, estimated to cost $650 million, covers 180,000 square meters of floor area, which includes a hotel tower, three levels of podium that has the ballroom/convention facilities, gaming areas, restaurants, retail shops, and health and wellness facilities. A 10-storey parking building shall also be constructed.

The complex is targeted for a grand opening in the first quarter of 2013.