A decade after it began, a legal dispute between Philippines gaming operator Bloomberry Resorts and Global Gaming Asset Management (GGAM) has ended.
Bloomberry, operator of the Solaire Casino Resort in Manila, has agreed to buy back more than 921 million shares from GGAM for PHP18.32 per share, for US$300 million through a block sale on the Philippine Stock Exchange.
According to Forbes, the standoff began prior to Solaire’s opening, in 2013. At that time, GGAM agreed to provide a host of professional services related to design, construction, layout and human resources. A unit of casino veteran William Weidner’s Las Vegas investment firm, GGAM was paid $175,000 per month for the services, until Bloomberry pulled the plug, six months after Solaire opened.
Enrique Razon’s company claimed that GGAM failed to deliver on its promises and also failed to bring high rollers to the property in Manila’s Entertainment City. GGAM sued for wrongful termination.
The new settlement, reached March 19, “will put an end to the dispute, which has dragged on for 10 years,” Bloomberry said in a regulatory filing. Bloomberry shares rose 3.8 percent on the news.
Bloomberry also owns a casino on Jeju Island in South Korea, is developing a new $1 billion casino resort in Quezon City, Philippines, and also has plans to develop another casino resort in Cavite Province, south of Manila.
