In a significant development for the Philippine gaming and resort industry, PH Resorts Group Holdings (PHR) has announced the termination of its sales deal with Okada Manila regarding the Emerald Bay project. This update was revealed in a disclosure made by PH Resorts on the Philippines Stock Exchange.
Emerald Bay’s Operator PH Resorts Confirms Termination of Sales Deal with Okada Manila
Details of the Termination
According to the disclosure, PH Resorts received an official letter from Tiger Resort Leisure & Entertainment (TRLEI), the operator of Okada Manila, on 1 July 2024, terminating the agreement that was initially signed on 8 December 2023. This decision marks a turning point in the future of the Emerald Bay project, located in Mactan, Cebu.
Statement from PH Resorts President
PH Resorts President Raymundo Martin M. Escalona commented on the development, saying, “We understand that the Okada Manila operator no longer intends to pursue the Emerald Bay acquisition. Nevertheless, this development shall give PHR the opportunity to engage with other parties which have already expressed their keen interest in the Emerald Bay project, but have been unable to formalize due to the restrictions under the TRLEI deal. We assure our shareholders and stakeholders, however, that the company’s management is already working towards another transaction, be it an acquisition, joint venture or otherwise that will ensure the completion of the Emerald Bay project.”
This statement underscores PH Resorts’ commitment to finding alternative partners to ensure the project’s successful completion.
Initial Deal Terms and Implications
The deal initially involved Tiger Resort (TRLEI) acquiring a significant majority ownership of PH Travel’s subsidiaries, namely, Lapulapu Leisure, Inc. and Lapulapu Land Corp, which are the entities operating the Emerald Bay project. The termination of this agreement opens new avenues for PH Resorts to explore different strategic options.
Previous Denial of Rumors
Interestingly, not long ago, PH Resorts denied rumors that talks with Okada Manila regarding the sale of Emerald Bay had fallen through. This recent announcement confirms that the deal has indeed been terminated, shedding light on the actual status of the negotiations.
Impact on the Emerald Bay Project
The Emerald Bay project was initially projected to launch in 2022 but faced delays due to PH Resorts’ financial losses that year. The termination of the deal with Okada Manila could potentially delay the project’s completion further. However, the company is actively seeking new partners to continue the project.
Potential for New Partnerships
The termination of the deal with TRLEI allows PH Resorts to engage with other interested parties. The company has already received interest from various potential partners who were previously unable to formalize agreements due to the restrictions of the TRLEI deal. This new development could lead to a range of opportunities, including acquisitions, joint ventures, or other strategic collaborations.
Future Prospects and Strategic Moves
PH Resorts’ management is working diligently to secure another transaction that will ensure the completion of the Emerald Bay project. The focus is on finding a partnership or strategic move that aligns with the company’s vision and ensures the project’s successful launch.
Commitment to Stakeholders
PH Resorts has assured its shareholders and stakeholders that the management is committed to the project’s completion and is exploring all possible avenues to achieve this goal. The company’s proactive approach to finding new partners demonstrates its dedication to fulfilling its promises to stakeholders and enhancing its market position.
Conclusion: The Termination
The termination of the sales deal between PH Resorts and Okada Manila regarding the Emerald Bay project marks a significant development in the Philippine gaming and resort industry. While this termination presents challenges, it also opens new opportunities for PH Resorts to engage with other interested parties and explore different strategic options. The company’s commitment to finding a viable solution to complete the Emerald Bay project highlights its dedication to delivering on its promises to stakeholders and enhancing its market presence.
FAQs About the Termination of PH Resorts’ Sales Deal with Okada Manila
1. What recent announcement did PH Resorts Group Holdings (PHR) make?
PH Resorts Group Holdings (PHR) announced the termination of its sales deal with Okada Manila regarding the Emerald Bay project.
2. When was the sales deal initially signed, and when was it terminated?
The sales deal was initially signed on 8 December 2023 and was terminated on 1 July 2024.
3. Who is the operator of Okada Manila?
The operator of Okada Manila is Tiger Resort Leisure & Entertainment (TRLEI).
4. What was the scope of the initial deal between PH Resorts and TRLEI?
The initial deal involved TRLEI acquiring a significant majority ownership of PH Travel’s subsidiaries, Lapulapu Leisure, Inc., and Lapulapu Land Corp., which operate the Emerald Bay project in Mactan, Cebu.
5. What did PH Resorts’ President Raymundo Martin M. Escalona say about the termination?
Raymundo Martin M. Escalona stated that while Okada Manila no longer intends to pursue the Emerald Bay acquisition, this development allows PHR to engage with other interested parties. He assured stakeholders that the company’s management is working towards another transaction to ensure the project’s completion.
6. What was the status of the Emerald Bay project before the termination of the deal?
The Emerald Bay project was projected to launch in 2022 but was delayed due to PH Resorts’ financial losses in 2022.
7. How has the termination of the deal with TRLEI impacted PH Resorts’ strategy for the Emerald Bay project?
The termination of the deal with TRLEI has opened new opportunities for PH Resorts to engage with other interested parties and explore different strategic options, including acquisitions and joint ventures, to ensure the project’s successful completion.
8. What assurances has PH Resorts given to its shareholders and stakeholders following the termination?
PH Resorts has assured its shareholders and stakeholders that the company’s management is committed to completing the Emerald Bay project and is actively seeking new partners or transactions to achieve this goal.
9. What potential opportunities does the termination of the deal with TRLEI present for PH Resorts?
The termination of the deal with TRLEI allows PH Resorts to engage with other parties who have already expressed interest in the Emerald Bay project but were previously unable to formalize agreements due to the restrictions of the TRLEI deal.
