Manila ¨C The Philippine unit of Japan¡¯s Universal Entertainment is no longer acquiring a majority stake in PH Resorts¡¯ gaming project in the central Philippines, PH Resorts said on Tuesday.
In a filing to the stock exchange, PH Resorts said it received a letter terminating a deal for Universal¡¯s Okada Manila to buy a majority stake in the company¡¯s Emerald Bay gaming project in Cebu province.
The companies failed to agree to a valuation, two sources with knowledge of the matter said. One of the sources said PH Resorts wants the buyer to pay the casino¡¯s debts due in July, which Okada was not in favor of.
Shares in PH Resorts slumped as much as 29% to a nine-month intraday low following the disclosure. Okada Manila did not immediately respond to a request for comment.
PH Resorts will engage with other companies that have already expressed interest in the Emerald Bay project, company president Raymundo Martin Escalona said in a statement.
It was already the third cancelled deal for the stalled project of PH Resorts, which is owned by Dennis Uy, a close associate of former President Rodrigo Duterte. Uy¡¯s conglomerate engaged in an aggressive, debt-backed expansion during Duterte¡¯s term, but was forced to sell companies following the pandemic.
Okada Manila was looking to expand its footprint outside of Manila where it operates a $3.3 billion gambling resort.
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