Bloomberry Resorts Corp., the flagship resort and casino company of billionaire Enrique Razon Jr., said its South Korean indirect subsidiary, Golden & Luxury Co. Ltd., has signed an agreement to spin off its casino business into a new company.
In a disclosure to the Philippine Stock Exchange, Bloomberry said the demerger will result in the creation of a new entity that will be sold to Gangwon Blue Mountain Co. Ltd. The Korean buyer has already made a down payment of KRW500 million for the acquisition, though the final purchase price has yet to be determined.
“The completion of the transaction and payment of the purchase price shall be conditioned on completion of the demerger, due diligence, and regulatory approval,” Bloomberry said in its filing.
Golden & Luxury, a hotel and casino operator based on Jeju Island, was acquired by Bloomberry in 2015 through a series of transactions. The Philippine gaming and resorts operation holds an 86.6 percent stake in the company through its wholly owned subsidiary, Solaire Korea.
Bloomberry had previously attempted to sell its Jeju operations in 2016 amid financial challenges, but the deal did not materialize. The latest agreement marks a renewed effort to divest from the struggling market and refocus on the company’s profitable domestic operations.
Bloomberry continues to expand in the Philippines, where its flagship Solaire Resort Entertainment City remains one of the country’s leading integrated resorts. It opened in May last year Solaire Resort North in Quezon City, underscoring the firm’s shift toward strengthening its local gaming portfolio.
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