Bloomberry sells shares to fund projects

MANILA, Philippines - Razon-led Bloomberry Resorts Corp. is selling more shares from an earlier announced top-up offering through bookrunner CLSA Ltd. to fund a resort and gaming complex.

In a disclosure to the Philippine Stock Exchange yesterday, Bloomberry said that it has received a letter from CLSA for the exercise of the overallotment option.

“CLSA Ltd. as stabilizing agent, has given notice to Prime Metroline Holdings, Inc. on May 28, 2012 as regards the exercise of the option contained in...the placing agreement dated May 1, 2012 for 117,996,300 option shares,” CLSA said in its letter.

Earlier this month, Bloomberry raised P8.85 billion from the sale of 1.18 billion shares held by Prime Metroline at P7.50 each as part of its top-up offering.

Bloomberry’s underwriters have also set aside 117.996 million shares for the overallotment option.

With the exercise of the overallotment option, the firm expects to generate a total of P9.73 billion from sale of shares.

Proceeds from the offering would be used to develop the first phase of Solaire Manila, which is the first casino complex to rise in Pagcor’s Entertainment City.

Phase 1 of the project which covers 180,000 square meters of floor area and includes a hotel tower, three levels of podium that has the ballroom or convention facilities, gaming areas, restaurants, retail shops, and health and wellness facilities, is estimated to cost $650 million.

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

In April, Bloomberry granted Nevada-based casino operator Global Gaming Philippines LLC (GGAM) the option to buy up to 921.18 million shares equivalent to 9.91 percent at P1 per share plus $15 million.

Bloomberry said earlier the option would expire if not exercised by the date of commercial operations of the $1.2-billion Solaire Manila project in Pagcor Entertainment City.

During the construction stage of the Solaire project, GGAM would provide planning, technical and other advisory services.

GGAM would likewise provide management services when Solaire Manila commences commercial operations.