Belle sets P9.11-B funding for spinoff of gaming assets

MANILA, Philippines - Upscale resort developer Belle Corp. is forking out P9.11 billion to fund the spin-off of its gaming assets into once-dormant firm Sinophil Corp. as part of an in-house reorganization plan.

In a disclosure to the Philippine Stock Exchange, Belle said it would subscribe to 24.7 billion shares of Sinophil at P0.369 per share via a private placement.  This would result in Belle increasing its stake in Sinophil to 89.14 percent from 50.42 percent.

The subscription price represents a significant discount from Sinophil’s current trading price of P1.17 per share based on the 30-day volume weighted average price of the shares of the company prior to the date of the subscription plus a premium of five percent.

Once the transfer of shares is complete, Sinophil will become the holding company for all gaming businesses and interests of the family of retail tycoon Henry Sy.

Sinophil will receive 100 percent of Belle stakes in Premium Leisure Amusements Inc., which was given a license to build the City of Dreams Manila,  plus 34.5 percent equity from  online lotto equipment provider Pacific Online Systems Corp.

The $1.3-billion City of Dreams Manila is a joint venture between Belle and Macau casino giant Melco Crown Entertainment Ltd. It is expected to open its doors in October this year, offering various leisure and entertainment options, including multiple luxury hotels with 950 rooms and a 20,000-square-meter gaming space featuring up to 365 gaming tables and 3,300 slot machines.

Belle will retain direct ownership of the land and building of City of Dreams Manila, from which it will continue to receive rental income. It will also retain direct ownership and continue to develop its other assets, principally its properties in the Tagaytay Highlands and Midlands complexes, including surrounding residential and leisure assets of more than 800 hectares of undeveloped land.