PH Resorts Group Holdings Inc, the Philippines gaming investor and developer of the Cebu integrated resort Emerald Bay, announced on Monday that it is engaged in “substantive discussions” with alternative parties due to a lack of progress in ongoing takeover talks with local property developer AppleOne Properties Inc. The uncertainty surrounding the Memorandum of Understanding (MOU) signed with AppleOne in October has prompted PH Resorts Group to explore new opportunities, signaling potential changes in the future of Emerald Bay.
Background on the Takeover Talks:
The MOU signed in October outlined a potential investment by AppleOne Properties Inc into Emerald Bay. The terms of the agreement included AppleOne’s consideration for a majority equity interest in PH Resorts Group subsidiaries Lapulapu Leisure, Inc and Lapulapu Land Corp, or the acquisition of assets comprising Emerald Bay and its associated land. However, as of the latest update, no definitive agreement has been reached between PH Resorts Group and AppleOne.
Challenges Faced by PH Resorts Group:
This development marks the second setback for PH Resorts Group in 2023, following unsuccessful negotiations with Bloomberry Resorts Corp earlier in the year. The initial deal with Bloomberry Resorts Corp aimed at securing substantial shares in both Emerald Bay and another project known as The Base Resort Hotel and Casino in Clark. The withdrawal of Bloomberry from the deal in March added to the challenges faced by PH Resorts Group.
Emerald Bay Project Overview:
Emerald Bay, envisioned as the second integrated resort on Cebu, is set to include 146 gaming tables, 729 electronic gaming machines (EGMs), 780 hotel room bays, and five villas in its Phase 1 development. The project holds the promise of contributing to Cebu’s gaming and hospitality landscape, following the 2022 opening of Nustar.
Exploring Alternatives:
With the current status of the MOU uncertain, PH Resorts Group is actively engaging in substantive discussions with alternative parties. The non-exclusive nature of the MOU allows the company to explore new avenues and potential partnerships, indicating a proactive approach to secure the future of the Emerald Bay project.
PH Resorts Group’s pursuit of viable options amidst stalled takeover talks demonstrates resilience and adaptability in the face of challenges. As discussions unfold with potential new partners, the fate of Emerald Bay hangs in the balance, with stakeholders closely monitoring developments that could shape the future of gaming and hospitality in Cebu. The journey of PH Resorts Group highlights the dynamic nature of the industry and the strategic considerations required to navigate uncertainties successfully.