PH Resorts Group announced that the deal to sell Emerald Bay to Tiger Resort, Leisure and Entertainment Inc. (TRLEI), the operator of Okada Manila, has fallen through.
PH Resorts confirmed the news via a filing to the Philippine Stock Exchange on Tuesday, noting that it had received a letter dated July 1st terminating the deal.
The deal encompassed the acquisition of a significant majority ownership of PH Travel’s subsidiaries, namely Lapulapu Leisure, Inc. and Lapulapu Land Corp. These subsidiaries operate the Emerald Bay Project, located in Mactan, Cebu.
PH Resorts’ president, Raymundo Escalona, was quoted in Tuesday’s announcement, stating: “We understand that the Okada Manila operator no longer intends to pursue the Emerald Bay acquisition. Nevertheless, this development allows PHR to engage with other parties that have already expressed keen interest in the Emerald Bay Project but were unable to formalize agreements due to the restrictions under the TRLEI deal.
“We assure our shareholders and stakeholders 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.”
In a statement from TRLEI’s parent company, Universal Entertainment Corp, dated Monday, the company announced: “TRLEI notified PH Resorts of the termination of the term sheet as certain closing conditions are not or cannot be fulfilled.”
The Japanese company further stated: “Due to confidentiality obligations, the company does not provide specific details of this matter.”
About a week earlier, local media report indicated the collapse of the sale. However, PH Resorts issued a clarification denying the deal’s failure.
At that time, PH Resorts Group confirmed it remained on schedule to finalize the sale of Emerald Bay to the operator of Okada Manila by July.
The report mentioned that the issue stemmed from a disagreement over commercial terms. Sources indicate that the challenge does not concern the project’s feasibility but rather what one insider described as “unrealistic” conditions set by the selling party. For instance, Dennis Uy seeks a premium for his remaining stake in the project and repurchase rights after selling and leasing back the project land to settle substantial debts owed to the Sy-led China Banking Corp.
