Casino and resort operator Bloomberry Resorts Corp. has raised Php5.65 billion ($126 million) in a share sale. Bloomberry announced its majority shareholder’s, Prime Metroline Holdings Inc., plan to sell 435 million of company shares at Php13 pesos per share, roughly under 4% of its total issued shares.
The top-up offering in that price represents a discount of 8.3% based on the company’s closing stock price of Php14.18 per share on Monday. Following the transaction, Bloomberry’s public float is expected to increase to 30.97% from 28.13% while foreign ownership will also see a modest bump to 24.29%, up from the current 22.34%.
The decision to offer the top-up offering was made on two fronts: to help pay off some of the company’s debt and fund a possible overseas expansion. During its disclosure, the company said that equity fund raising through subscription transaction would give Bloomberry the necessary funding it needs in the quickest time possible while also keeping the company from using a majority of its own fund to settle its debt and finance its expansion plans. Bloomberry Chairman Enrique Razon Jr. has acknowledged the company’s plan to look at the South Korea and Japan markets as potential investment opportunities in the future.
“The transaction is also intended to strengthen and broaden the capital base of Bloomberry as well as to promote a wider dispersion of the shares to a broad spectrum of institutional investors,” the company added.
Caesars eyeing possible casino site in the Philippines
Meanwhile, Caesars Entertainment has zeroed in on a proposed casino site in the Philippines. According to Manila Standard Today, the Las Vegas-based casino operator looks at a 30-hectare plot of land next to Terminal 2 of the Ninoy Aquino International Airport as a possible site for its proposed $1.5 billion resort and casino.
Caesars President for International Development Steven Tight indicated that Caesars’ plans for the Philippines isn’t limited to just building a casino, even though that will be the highlight of its proposed project. Tight also said that foreign experts were brought in to the country to help advise the airport, which has consistently ranked as one of the worst international airports in the world.
According to Tight, a new control tower with better technology than the one currently being used in NAIA could allow more take-offs and landings, thus increasing the volume of flights NAIA is capable of accommodating. A light railway transit from terminals 1 and 2 is also being looked at, as well as a high-speed exits to clear the runways faster and give way to other plans to either land or take-off.
It’s still unclear if Caesars is willing to help finance or at least contribute in the improvement of the airport. But considering that its possible casino site is situated right next to one of the three international terminals, it would probably be in Caesars’ best interest to ensure that improvements to the airport are made.
Caesars has made it known that it sees the Philippines as a major tourist destination with the potential to offer a more diverse tourism package than most Asian countries with casinos in them.