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Universal Entertainment cancels Emerald Bay acquisition

Posted on by darion

The company claims that certain closing conditions have not been met.

Philippines.- PH recreation centers AND Okada Group announced that the sale of the Emerald Bay Resort and Casino project will not go through. The decision comes a week after PH Resorts (PHR) denied that negotiations had been put on hold.

Universal entertainment issued a company filing announcing that Tiger Resort, Leisure, and Entertainment (TRLEI) had decided to terminate its preliminary agreement to purchase a majority interest in the property. It stated that the closing conditions set forth in the Term Sheet “have not been or cannot be satisfied” and that it could not provide further details due to confidentiality obligations

Universal Entertainment said the cancellation will have no impact on the company’s consolidated financial results for the fiscal year ending December 31, 2024.

PHR has issued a statement confirming that yesterday (July 1) it received a letter from TRLEI terminating the Term Sheet dated December 8, 2023.

President of PHR Raymundo Martin M. Escalona said: “We understand that Okada Manila no longer intends to pursue the Emerald Bay acquisition. However, this development will provide PHR with an opportunity to work with other parties that have already expressed strong interest in the Emerald Bay project but have not been able to formalize it due to the constraints of the TRLEI agreement.

“However, we assure our shareholders and stakeholders that the Company’s management is already working on another transaction, whether in the form of an acquisition, joint venture or other means, that will ensure completion of the Emerald Bay Project.”

PHR has been granted a temporary gaming license by Philippine Amusement and Gaming Corporation (PAGCOR) for Emerald Bay Resort, located on Mactan Island, in Lapu Lapu City, Cebu, in 2017. Development was put on hold during the Covid pandemic. There was hope that once TRLEI and PHR completed the sale, work would resume with an eye on opening in 2026.