MANILA, Philippines – After failed deals with Enrique Razon’s Bloombery and the Okada Manila group, will one of the Philippines’ biggest construction companies be able to save Dennis Uy’s casino-resort project in Cebu?
Businessman Dennis Uy’s PH Resorts Group Holdings (PHR) disclosed on Monday, December 9, that it has signed a memorandum of understanding (MOU) with one of the Philipines’ leading construction companies, EEI Corporation, for its unfinished Emerald Bay Project in Mactan, Lapu-Lapu City in central Philippines.
Emerald Bay is an integrated resort with a five-star hotel with two 15-storey towers (642 rooms), four pools, 18 food and beverage outlets, retail spaces, conference and exhibition facilities, and a gaming floor with over 700 electronic gaming machines and more than 140 tables.
“The MOU also paves the way for EEI to execute an agreement with PHR and/or its subsidiaries, Lapulapu Leisure Inc. (LLI) and Lapulapu Land Corp. (LLC), to finance, construct, and complete the Emerald Bay Project, upon the execution of definitive documentation,” PHR told the Philippine Stock Exchange on Monday, December 9.
It’s still a big IF, though, as the company said the deal terms are still being finalized.
The Yuchengco Group’s House of Investments (HI) in April last year sold 20% of its stake in EEI Corporation to the holding firm of Speaker Martin Romualdez, RYM Business Management Corporation, for P1.25 billion.
In May 2022, PHR’s subsidiary, PH Travel and Leisure Holdings Corporation (PH Travel), signed a proposed investment deal with Bloombery Resorts Corporation (BRC), led by ports magnate Enrique Razon, with the latter even making a P1 billion deposit. Less than a year later, however, or in March 2023, BRC terminated the deal.
PH Travel is the holding company of Dennis Uy’s Udenna Group’s gaming and hospitality business, which includes LLI, LLC, and the Donatela Hotel Panglao Corporation. The latter operates the 7.5-hectare Donatela Resort & Sanctuary in Panglao island, Bohol.
In December 2023, PH Travel executed a term sheet with the Okada Manila group’s Tiger Resort Leisure & Entertainment Incorporated (TRLEI) for a “significant majority ownership” of LLI and LLC as operators of the Emerald Bay project, subject to various approvals from regulators and shareholders. TRLEI operates the Okada Manila integrated casino, hotel and entertainment complex in Entertainment City, Metro Manila.
Six months later, however, TRLEI terminated the term sheet.
Uy, often described as a crony of former president Rodrigo Duterte, saw his capital-intensive empire grow during the previous administration, but some of his ventures, such as Phoenix Petrolum and PH Resorts, are now in financial distress.
PH Travel said its parent, Udenna Corporation, is commmitted to support the project and continues to cover the operating expenses and maintenance of PHI’s properties.
PHI had envisioned its Emerald Bay Resort and Casino to rival casino resorts in Manila and Macau. It initially planned on a soft opening end of 2021. Had the deal with TRLEI pushed through, a July 2024 opening this year had been projected.
As of September 2024, the PH Resorts Group reported a net loss of P7.2 billion. Current liabilities exceeded its assets by P12.5 billion, with negative operating cash flows of P127.8 million.
“These conditions indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern and, therefore, that the Group may not be able to realize its assets and discharge its liabilities in the normal course of business,” the PH Resorts Group said in its third quarter earnings report released last.
Dennis Uy’s Udenna conglomerate’s other major businesses are telco firm DITO Telecommunity Corporation; oil and gas retail firms under Phoenix; food brands Conti’s and Wendy’s; education firm Enderun Colleges; Chelsea Shipping and logistics; property development firm Udenna Land. – Rappler.com
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