Bloomberry Resorts Corporation announced on Tuesday the successful conclusion of its acquisition of shares worth $290.5 million from its former partner, Gaming Asset Management (GGAM) Philippines LLC. This transaction marks the completion of a recent settlement agreement between the two entities, resolving a protracted dispute.
Overview of Transaction:
The purchase, executed through a Special Block Sale via the Philippine Stock Exchange, involved Bloomberry acquiring 921,184,056 of its own shares from GGAM at a price of Php18.22 per share. With this acquisition, Bloomberry finalizes the settlement agreement, signaling a pivotal moment for the company.
Background of Dispute:
The settlement brings closure to a longstanding disagreement stemming from a Management Services Agreement inked prior to the opening of Manila’s Solaire Resort Entertainment City in 2013. Under this agreement, GGAM was contracted to provide technical services related to Solaire’s design, construction, and employee recruitment, for which it received a monthly fee of US$175,000.
Reasons for Termination:
Bloomberry terminated the agreement six months post-Solaire’s inauguration, citing GGAM’s alleged failure to meet contractual obligations, particularly in attracting high-rolling clientele and addressing design concerns at the casino. GGAM responded with a lawsuit for wrongful termination, thus initiating a protracted legal battle between the two parties.
Scope of Settlement:
The settlement agreement encompasses all pending litigations between Bloomberry and GGAM, spanning multiple jurisdictions including the Philippines, Nevada, and Singapore. By reaching this settlement, both parties aim to put an end to prolonged legal disputes, allowing them to refocus efforts on their respective business objectives.
Implications for Bloomberry:
For Bloomberry Resorts Corporation, the completion of this share purchase signifies a significant milestone in its journey. By resolving the dispute with GGAM, the company can now streamline its operations and concentrate on enhancing its offerings within the competitive gaming industry landscape.
Bloomberry Resorts Corporation’s successful acquisition of shares from GGAM marks the culmination of a complex settlement process. As both entities move forward, this resolution paves the way for renewed focus and stability, enabling them to pursue their respective strategic objectives with renewed vigor.