Talks between Gokongwei, Okada fail

MANILA, Philippines - Gokongwei-led Robinsons Land Corp. (RLC) and the gaming arm of Japanese tycoon Kazuo Okada have called off their partnership for a $2-billion integrated casino project along Manila Bay.

In a disclosure to the Philippine Stock Exchange yesterday, listed property firm RLC said it terminated talks with Universal Entertainment Group, a license holder of Philippine Amusement and Gaming Corp. (Pagcor).

“Upon mutual agreement, RLC and Universal Entertainment have decided not to pursue discussions between them concerning the proposed development located in the Pagcor Entertainment City Project,” RLC said.

“No further explanation,” RLC president and CEO Frederick Go said in a text message.

In December, RLC and Universal Entertainment signed a preliminary partnership deal, which was targeted to be finalized last Jan. 31. However, the two firms decided to indefinitely extend the negotiations.

Okada was earlier hit by allegations that Universal Entertainment bribed Philippine government officials.

Okada holds a license to operate a casino complex in Pagcor’s Entertainment City, a 120-hectare property reclaimed from Manila Bay, and is envisioned as the Philippines’ answer to the Las Vegas, Singapore and Macau gaming hubs.

The gaming hub’s operations kicked off with the opening of the $1.2-billion Solaire Resort and Casino of port magnate Enrique Razon Jr. in March.

Other licensees in Entertainment City are real estate tycoon Andrew Tan’s Alliance Global Group Inc. that has partnered Malaysia’s Genting Bhd, and retail magnate Henry Sy’s Belle Corp. that joined forces with Macau-based casino giant Melco Crown Entertainment Ltd.