Philippines-based gaming outfit Bloomberry Resorts has suspended trading in its shares after its former casino management partner abruptly sold off its entire stake in the firm. In September, Bloomberry had a falling out with Global Gaming Asset Management (GGAM), the Cantor Fitzgerald subsidiary Bloomberry had tasked with running the gaming operations of its Solaire Casino and Resort. Solaire is the first of four resort-casinos scheduled to open in Manila’s Entertainment City complex.
Bloomberry justified handing GGAM its walking papers just six months after the casino opened its doors by claiming the firm had failed to bring in sufficient quantities of VIP gamblers from China, an allegation hotly disputed by GGAM, which said it had consistently exceeded the terms of its management contract. The two parties and Solaire developer Sureste Properties are preparing to slug the affair out in a Singapore arbitration proceeding, but Bloomberry has since handed Solaire’s reins to Thomas Arasi, the former president/CEO of Singapore integrated resort casino Marina Bay Sands.
Following the market’s close on Wednesday, GGAM announced it had sold off its entire holdings in Bloomberry, amounting to 8.7% of the total outstanding shares. Finance Asia reported that GGAM disposed of its 921.18m Bloomberry shares via a block sale worth P7.42b (US $164.5m), representing a discount of between 8% to 11% of the stock’s Wednesday close. The demand reportedly came primarily from international long-only funds, with local investors accounting for only 10% of the shares moved. Bloomberry stock closed Wednesday at P8.98, down 25% since GGAM got the boot and down 50% since Solaire opened last March.
Because GGAM’s stake is the subject of a counterclaim by Bloomberry in the Singapore arbitration, Bloomberry filed a request with the Philippine Stock Exchange for a week-long suspension of trading in its shares. The company said the suspension was necessary in order to ”clarify the impact” of the sale and to “confirm that the buyers of the GGAM shares will not be affected by the arbitration claim.” Trading in Bloomberry will recommence on Friday, Jan. 24.
