Bloomberry's Jeju casino sale collapses

MANILA, Philippines – Bloomberry Resorts Corporation, the integrated casino and resort developer owned by businessman Enrique Razon Jr, is no longer actively looking for a buyer for its Jeju casino property in South Korea after negotiations with a Macau junket operator fell through.

"We had a sale already done but it fell through. But business is starting to pick up so we are not in a rush," Razon said in an interview on the sidelines of the Pilipinas 2016 Conference on Thursday afternoon, December 8.

Last June, Bloomberry and Iao Kun Group Holding Company Limited signed an agreement on the sale by Solaire Korea Company Limited of its 96.23% shareholding in Golden & Luxury Company Limited (G&L) – the owner and operator of the Jeju Sun Hotel & Casino in Jeju Island, South Korea.

Iao Kun Group is a holding company, which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter.

Analysts earlier said the move to sell Bloomberry's assets in Jeju Island will help eliminate the financial drag into its operations.

Bloomberry, however, managed to post strong profits despite failure to sell its casino venture in South Korea.

In the first 9 months of the year, Bloomberry booked net profit of P1.59 billion, a significant turnaround from the P1.51-billion net loss last year as it posted record revenues from gaming and non-gaming businesses.

Its Korean operations under Jeju Sun Hotel & Casino also posted a turnaround in the 3rd quarter of the year, posting P74-million net profit from a P252-million net loss posted in the previous quarter. (READ: Razon plans to build hotel, casino in Quezon City)

Jeju Sun Hotel & Casino, which is 5 minutes away from Jeju International Airport, has 208 hotel rooms and suites, 2,125 square meters of gaming space, dining options featuring fresh local produce and international cuisine, a bar and lounge, and other hotel facilities such as an event space.

The hotel and casino complex was reopened in September last year, after the first phase of a multi-stage refurbishment plan was implemented.

Aside from Jeju Sun Hotel & Casino, Bloomberry signed a deal to acquire two islands in South korea, the 20.96-hectare Silmi Island and the 12.2-hectare Muui Island.

In the Philippines, Bloomberry operates Solaire Resort & Casino located in goverment-sponsored Pagcor Entertainment City in Parañaque.

Share price of Bloomberry on Friday, December 9, closed at P6.30 per share, down 1.56% from the previous day's close. –