Gaming firm Leisure and Resorts World Corp. is teaming up with businessman Zaldy Co to buy out retailer Lucio Co’s 50-percent stake in the 200-room Midas Hotel and Casino along Roxas Boulevard.
In a disclosure to the Philippine Stock Exchange on Tuesday, LWRC said that it had teamed up with Eco Leisure and Hospitality Holding Co. in executing a preliminary agreement for the acquisition of half of Hotel Enterprises of the Philippines Inc., the company that owns and operates Midas Hotel.
Eco Leisure is a holding firm owned by Zaldy Co, who also owns and operates the luxury island-resort Misibis Bay in Albay. He earlier sold 50 percent of the stake in Midas Hotel to Lucio Co but was now buying back the same stake, according to LWRC investor relations officer Freddie Reyes.
“Their partnership is not working out so he’s buying back the 50-percent (holdings),” Reyes said. “But this is still subject to due diligence.”
It was earlier reported that Lucio Co acquired half of Midas Hotel, the old Hyatt, shortly after his flagship company Puregold Price Club Inc. went public in 2011.
In LWRC’s disclosure, the company said that upon satisfactory results of the due-diligence audit, the parties will enter into a share sale and purchase agreement and other definitive implementing agreements for the sale and purchase of the shares.
LWRC also intends to contribute P4 billion to the $1-billion Belle Grande project that will rise in front of Pagcor Entertainment City by next year.
The company has a stock market capitalization of P9.1 billion.