Solaire’s Korean casino sold to reduce bleeding

Razon-led Solaire Korea Co. Ltd. has pared down its exposure in South Korea with the sale of its interest in the Jeju Sun Hotel & Casino.

In a disclosure to the Philippine Stock Exchange on Thursday, Bloomberry said its offshore unit Solaire Korea Co. Ltd. had entered into an agreement to sell its 96.23 percent stake in Golden & Luxury Co. Ltd. to the Iao Kun Group for 117.5 billion Korean won or P4.7 billion.

The deal is seen to boost Bloomberry’s financial position given the financial haemorrhage from its Korean operations.

The agreement is subject to several conditions, including the results of a due diligence audit on the assets alongside regulatory approvals.

“Iao Kun desires to enter into the Jeju market and is confident that it can attract its Chinese VIP customers to Jeju Island,” the disclosure said.

“Solaire Korea, on the other hand, intends to focus its efforts on the development of its property in Muui and Silmi Islands,” it added.

Bloomberry chair Enrique Razon Jr. earlier said he was expecting a financial turnaround in the company’s South Korean operations, hopefully within this year.

Just last year, Bloomberry increased its exposure to the Korean market by buying 92 percent of the company that operates T.H.E. Hotel & Vegas Casino on Jeju Island, South Korea.

It also stepped up its landbanking activities in South Korea by signing a deal to purchase Silmi Island. The 20.96-hectare island is adjacent to the 12.2-hectare property on Muui Island, for which Bloomberry separately signed a purchase agreement.

Silmi Island is also within the coverage of the Incheon Free Economic Zone. Bloomberry said the area would be developed into a leisure and tourism complex with entertainment facilities and mixed-use developments.