Philippines conglomerate Udenna Corporation has increased its stake in PH Resorts Group, the company’s gaming and hospitality arm, by more than 4% to 86.59% following completion of a new shares subscription.
According to a Comprehensive Corporate Disclosure on Issuance of Shares filed by PH Resorts Group on Wednesday, the subscription was undertaken as compensation for Ph2.83 billion (US$58.9 million) in funding previously provided by Udenna via two tranches in March 2019 and March 2020.
“The issuance of shares will benefit the Company because the deposit of Php2.83 billion can be booked as equity,” PH Resorts Group said.
“Otherwise, if not exchanged for shares, the deposits will have to be treated as the company’s liability to Udenna Corporation, which will increase the company’s total debts.”
The money, it added, was used to partially fund and continue the construction of the company’s flagship project, Emerald Bay Resort & Casino, in Mactan, Cebu, and to acquire Lapulapu Land Corp, the entity that owns the land upon which Emerald Bay sits.
Udenna’s transaction has seen it increase its stake in PH Resorts Group from 82.28% to 86.59% via the acquisition of 1,686,309,523 common shares at a price of Php1.68 per share.
PH Resorts Group, which is aiming for a soft launch by the end of 2021 followed by a full opening in 2Q22, recently topped off the two hotel towers at Emerald Bay.
The first phase of the property will feature 122 gaming tables split between mass, premium mass and junkets, plus 600 EGMs and 270 hotel room bays located alongside a 300-meter strip of beach front.