PH Resorts in talks with other investors

MANILA, Philippines — PH Resorts Group Holdings Inc., the listed tourism and gaming company of Davao-based tycoon Dennis Uy, is in talks with other potential investors as it has yet to close a deal with AppleOne Properties Inc., a Cebu-based premier development company.

In a disclosure yesterday, PH Resorts said that as of Dec. 4, it has not reached an agreement with AppleOne, which earlier considered acquiring a majority stake in PH Resorts’ subsidiaries.

Last October, PH Resorts’ subsidiaries Lapulapu Leisure Inc. and Lapulapu Land Corp. and AppleOne signed a memorandum of understanding for AppleOne’s intent to obtain at least a majority of the equity interest in the subsidiaries or an asset purchase of the land and improvements of the Emerald Bay Project in Cebu.

PH Resorts said considering that the MOU is a non-exclusive engagement, it is holding “substantive discussions with other parties.”

Prior to this, PH Resorts was also in talks with tycoon Enrique Razon for a possible investment agreement, but this did not push through either.

Last October, PH Resorts also signed a sale and leaseback agreement with lender Chinabank for the 12.5 hectare land of the yet-to-be-completed Emerald Bay.

Emerald Bay, originally envisioned to be the first integrated beachfront casino resort in Mactan, was supposed to open in 2022, but was stalled by the COVID-19 pandemic.

As a result, PH Resorts’ short term loans with Chinabank ballooned to roughly P6 billion as of June 30, 2023, according to the company’s latest quarterly report.

PH Resort’s restructuring agreement with Chinabank allows the company to repay the peso bridge loan facility extended by the bank in 2018, while, at the same time, grants them continued possession and use over the property in order to finish the construction and development of the Emerald Bay.

“In addition, the option to buyback of the restructuring allows the subsidiaries or its nominees to reacquire the properties, if so desired,” PH Resorts disclosed earlier.

PH Resorts reported a net loss of P1 billion in the first half, resulting in a deficit of P3.71 billion.