Bloomberry settles 10-year dispute with GGAM
RAZON-LED Bloomberry Resorts Corp. said it has settled its decade-long dispute with casino management company Global Gaming Asset Management LLC (GGAM).
In a regulatory filing on Tuesday, Bloomberry said its subsidiaries Sureste Properties, Inc. (SPI) and Bloomberry Resorts and Hotels, Inc. (BRHI) have reached an agreement for a “universal settlement” covering all the pending cases between the parties.
The settlement requires SPI to purchase the 921,184,056 shares in Bloomberry held by GGAM for $300 million.
“At the conversion rate of P56 to $1, this agreed purchase price will amount to P18.32 per share. This purchase will be made through a special block sale through the Philippine Stock Exchange (PSE),” Bloomberry said.
“The settlement is contingent on the lifting of the writ of preliminary injunction and attachment on the GGAM shares in Bloomberry issued by the Regional Trial Court of Makati, as well as the Philippine Depository & Trust Corp. lifting of all suspensions and restrictions on transactions in the shares, and PSE approval of the special block sale,” it added.
Bloomberry said the settlement “will put an end to the dispute of SPI and BRHI with GGAM, which has dragged on for ten years.”
GGAM is the former partner of Bloomberry in managing Solaire Resort Entertainment City in Parañaque.
In 2013, Bloomberry terminated its management deal with GGAM, citing the latter’s supposed material breach of contract.
A Singapore arbitration court in 2019 directed Bloomberry to pay $296 million to GGAM, which was contested by the Razon-led company.
Aside from Solaire Resort Entertainment City, Bloomberry owns and operates Solaire Resort North in Quezon City and Jeju Sun Hotel & Casino in South Korea.
In 2023, Bloomberry recorded an 85% growth in net income to P9.5 billion. Its consolidated net revenue rose by 24% to P48.4 billion.
Bloomberry shares fell by 8.7% or P1 to P10.50 apiece on Tuesday. — Revin Mikhael D. Ochave
