PH Resorts Group Holdings (PHR), the operator of the Emerald Bay project, (photo on left), recently confirmed the termination of its sales agreement with Okada Manila. This announcement was made in a disclosure to the Philippines Stock Exchange.
The termination letter was received from Tiger Resort Leisure & Entertainment (TRLEI), the operator of Okada Manila, on 1 July, 2024. The deal, which was initially signed on 8 December, 2023, would have seen Tiger Resort acquire a significant majority ownership of PH Travel’s subsidiaries, Lapulapu Leisure, Inc. and Lapulapu Land Corp. These subsidiaries are the entities that operate the Emerald Bay Project, located in Mactan, Cebu.
Raymundo Martin M. Escalona, the President of PH Resorts, stated, “We understand that the Okada Manila operator no longer intends to pursue the Emerald Bay acquisition.” He further added, “Nevertheless, this development shall give PHR the opportunity to engage with other parties which have already expressed their keen interest in the Emerald Bay project, but have been unable to formalize due to the restrictions under the TRLEI deal. We assure our shareholders and stakeholders, however, that the company’s management is already working towards another transaction, be it an acquisition, joint venture or otherwise that will ensure the completion of the Emerald Bay project.”
Interestingly, PH Resorts had previously denied rumours that talks with Okada Manila, (photo on right),regarding the sale of Emerald Bay had fallen through. The Emerald Bay project was initially projected to launch in 2022, but the launch was delayed due to PH Resorts’ losses in 2022.
Unforseen termination of the deal
This turn of events has opened up new possibilities for PH Resorts and the Emerald Bay project. With the termination of the Okada Manila deal, PH Resorts now has the opportunity to engage with other interested parties. This could potentially lead to new partnerships and collaborations that could ensure the completion of the Emerald Bay project.
The Emerald Bay project, located in Mactan, Cebu, is a promising venture with significant potential. It is set to be a premier integrated resort casino in the Visayas, offering 146 gaming tables, 729 electronic gaming machines, and 780 hotel rooms with five villas. With its prime location and extensive facilities, the Emerald Bay project is poised to become a major player in the tourism and entertainment industry.
As PH Resorts navigates this new chapter, stakeholders and potential investors will be watching closely. The termination of the Okada Manila deal may have been unexpected, but it has also opened up new opportunities for the Emerald Bay project. With the right partnerships and strategic decisions, PH Resorts could turn this setback into a stepping stone towards greater success.
Closer look at why the deal was terminated
The termination of the deal between Okada Manila’s operator, Tiger Resort Leisure & Entertainment Inc. (TRLEI), and PH Resorts Group Holdings Inc. for the Emerald Bay project was due to certain closing conditions under the term sheet not being fulfilled.
While the specific details of these conditions were not disclosed, reports suggest that disagreements over commercial terms were a significant factor. Sources indicated that the challenge did not concern the project’s feasibility but rather what one insider described as “unrealistic” conditions set by the selling party.
Despite the termination of the deal, PH Resorts remains optimistic about the future of the Emerald Bay project. The company is now exploring other potential partnerships and transactions that will ensure the completion of the project. This includes engaging with other parties that have already expressed interest in the Emerald Bay project.
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