Bloomberry Resorts Corp Ends Dispute with GGAM by Signing US$300m Settlement Agreement

Home » Bloomberry Resorts Corp Ends Dispute with GGAM by Signing US$300m Settlement Agreement

Bloomberry Resorts Corporation, owner of Solaire Resort, revealed that it has managed to reach a settlement agreement in its 10-year legal dispute with previous ally Global Gaming Asset Management (GGAM) Philippines LLC, according to Inside Asian Gaming.

Terms of the settlement agreement:

According to the terms of the settlement, the firm has reportedly consented to purchase back 921,184,056 shares in the firm owned by GGAM through a Special Book Sale at an acquisition cost of Php18.32 per share, equivalent to an overall acquisition cost of US$300m. As for the agreement, it is conditional on the Regional Trial Court in Makati raising the preliminary injunction and seizure order on the shares of the GGAM, and the Philippine Depository and Trust Corp raising all limitations and suspensions on stock transactions, according to Bloomberry.

Relatedly, the long lasting legal battle associated with the Management Services Agreement which was reportedly officially signed by both firms before the opening of the Solaire in 2013, under which GGAM, the regional unit of William Weidner’s, veteran casino executive, casino investment company which is headquartered in Las Vegas, was paid out US$175,000 on a monthly basis to supply technical services associated with Solaire’s employee recruiting services, construction, layout, planning and design.

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The fresh settlement agreement applies to every pending case between the 2 sides, involving cases in Singapore, Nevada and Philippines, according to Inside Asian Gaming.

Furthermore, in a note, Raffy Mendoza, the analyst at Maybank Securities, commented that transaction would send Bloomberry’s free float to fall by 8.1% points to 29.1%, but kept a “BUY” on the stocks, “as the share price decline brought about by the GGAM settlement presents a buying opportunity at its current 2024E EV/EBITDA of 8x.”

Reason for dispute:

The reason for the dispute was that Bloomberry ended the beneficial relationship 6 months post-opening claiming that GGAM Philippines failed to fulfill the conditions of the contract, specifically the promise to deliver gamblers who spend large amount of money to the facility. In addition, concerns have been raised regarding the layout and design of the casino.

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As for GGAM’s response to the claims, it accussed the firm of unjustified termination.

Bloomberry to open Solaire Resort North in May 2024:

In other news, Enrique K Razon Jr, CEO and president of Bloomberry announced that the firm’s new integrated resort (IR), Solaire Resort North, will officially open its doors to the public at the end of May.

This revelation was part of the firm’s 2023 financial results report, in which the firm revealed an 85% yearly growth in net revenue to Php9.5bln, which is approximately US$170m.

As soon as it gets finished, IR will include 13,150 square meters of gaming space, banqueting and meeting establishments, 11 bars and restaurants, a 33rd floor Sky Bar with expansive views of the district and 526 suites and guestrooms.

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