Bloomberry selling Jeju casino in South Korea
Bloomberry Resorts Corp., the integrated casino and resort developer owned by businessman Enrique Razon Jr., said Thursday it is selling its casino property in Jeju Island, South Korea.
“Bloomberry Resorts Corp. and Iao Kun Group Holding Company Limited hereby jointly announce that their respective subsidiaries have signed an agreement on the sale by Solaire Korea Co. Ltd. of its 96.23-percent shareholding in Golden & Luxury Co. Ltd.—the owner and operator of the Jeju Sun Hotel & Casino in Jeju Island, South Korea,” Bloomberry said in a disclosure to the stock exchange.
The agreement is subject to several conditions, including the satisfactory results of a due diligence that Iao Kun will conduct on the shares to be sold, G&L and its assets and business.
It is also subject to the approval of other government authorities, according to Bloomberry.
The purchase price for the shares and the shareholder’s loan is 117.5 billion Korean won.
Bloomberry said other details would be disclosed once the transaction was completed within the next 45 days.
“Iao Kun desires to enter into the Jeju market and is confident that it can attract its Chinese VIP customers to Jeju Island. Solaire Korea on the other hand intends to focus its effort on the development of its property in Muui and Silmi Islands,” Bloomberry said.
Iao Kun Group is a holding company which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter. The company is entitled to receive all of the profits of the VIP gaming promoters from VIP gaming rooms.
Analysts said the move to sell Bloomberry’s assets in Jeju Island would help eliminate the financial drag into its operations.
Jeju Sun Hotel & Casino, which is five minutes away from Jeju International Airport, has 208 rooms and suites, 2,125 square meters of gaming space, dining options featuring fresh local produce and international cuisine, a bar and lounge and other hotel facilities such as an events space.
The hotel and casino complex was reopened in September 2015 after implementing the first phase of a multi-stage refurbishment plan.
Under Solaire Korea’s management, the newly renovated casino was equipped with the latest state-of-the-art table games and electronic gaming equipment for the exclusive use of foreign guests.
Share price of Bloomberry closed lower by 1 percent to P5.90 Thursday.