After completing a P756-million re-initial public offering, integrated gaming resort developer PH Resorts Group Inc. (PHR) is raising another P2.83 billion from the issuance of new shares to its controlling stockholder, Davao-based businessman Dennis Uy.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, PHR said it had issued 1.686 billion in additional common shares to Uy’s holding firm, Udenna Corp., at a subscription price of P1.68 a share.
Udenna and PHR agreed on the issuance of additional shares for the former’s deposit for future stock subscription at the same price as the follow-on offering price.
The PSE implemented a trading halt on PHR from 9:30 am on Monday to allow the market to digest its disclosure on the issuance of new shares to Udenna at P1.68 per share, invoking the rule on additional listing of securities under its consolidated listing and disclosure rules.
Shares of PHR fell by nearly 1 percent to close at P3 per share on Monday as the market adjusted down to the swap price with Udenna. PHR is now valued by the stock market at around P15.9 billion.
One local fund manager said PHR’s stock price decline on Monday was “negligible” considering that the dilution was around 32 percent. It would have been better if the swap price had been based on volume-weighed average price, the fund manager said. Nonetheless, he pointed out that those who had subscribed to the follow-on offering had already made money.
The related party transaction committee, composed of the three independent directors of PHR, unanimously approved the terms of the transaction, the PHR disclosure said.
PHR also announced on Monday that it had topped off the first two towers of its flagship integrated casino beachfront resort Emerald Bay in Cebu—on track with the targeted grand opening by the second quarter of 2022.
In construction, a “topping off” ceremony marks the completion of the structure of a building, specifically the placement of the final steel beam.
“The topping off of towers A and B represents a significant milestone in the on-going construction of Emerald Bay. Going forward, one will see more construction accomplishment on the facade as well as in the interiors. We are very much excited to be on the road to open Emerald Bay on spec, on time and on budget,” PHR chief operating officer Jose Angel Sueiro said in a disclosure to the PSE on Monday.
Upon completion of the first phase, Emerald Bay will offer 122 gaming tables for mass, premium mass and junkets; 600 electronic gaming machines and 270 hotel rooms.
However, the management team is pushing for a soft opening by the end of 2021, and expects to increase its gaming capacity and hotel rooms starting 2022.
PHR recently completed a follow-on offering of primary common shares that raised P756 million in gross proceeds for the project.
“Despite a very challenging year caused by the current COVID-19 pandemic, we were able to achieve many project and company milestones. The topping off of the two towers in Emerald Bay represent a very major tangible and visible milestone in its construction. Our timetables make the scheduled completion of the first phase of Emerald Bay ready by the time we anticipate a marked recovery in the country’s tourism and gaming sector,” said Uy, the PHR chair.
With a 300-meter beachfront, PHR is seen uniquely positioned as its 12-hectare Emerald Bay project is the only seaside property in Cebu with gaming facilities.
In his welcome remarks during the listing of new shares from PHR’s follow-on offering, PSE president Ramon Monzon said: “I am pleased that the PSE was able to support the company in its capital raising requirement. Bulk of the funds will be utilized by the company for the construction of Emerald Bay, which is a much-awaited integrated resort and casino development expected to have its soft opening by end of next year.”
“This massive project has generated and will continue to generate much-needed jobs for Filipinos and will help boost tourism in Cebu and stimulate the province’s economy after this pandemic,” Monzon said. INQ