Razon Resolves Dispute with Former Solaire Manager for $300 Million

After a protracted legal battle spanning a decade, Bloomberry Resorts Corp., led by tycoon Enrique Razon Jr., has reached a settlement with Global Gaming Philippines LLC (GGAM), a former management firm of Solaire Resorts & Casino, for a sum of $300 million (approximately P16.8 billion).

Settlement Details:

  • Purchase Agreement: Sureste Properties Inc. (SPI), a subsidiary, will acquire 921.18 million shares of Bloomberry at P18.32 per share, constituting 8.1% of Bloomberry’s total outstanding shares held by GGAM.

Market Response:

Following the announcement, Bloomberry’s shares experienced an 8.7% decline to P10.50 per share on Tuesday, reflecting the anticipated cost of the settlement.

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Transaction Structure:

The buyout will be executed through a special block sale at the Philippine Stock Exchange (PSE), as confirmed by Bloomberry.

Resolution Impact:

Bloomberry hailed the settlement as the conclusion of a decade-long dispute with GGAM, signaling closure on the matter.

Analyst Insights:Razon

COL Financial analyst Richard Laneda clarified that the transaction is not classified as a share buyback but rather as an investment. Laneda cautioned that while the purchase alleviates the overhang on Bloomberry shares, it may lead to increased interest expenses if the company opts to borrow funds for future operational and capital expenditure needs.

Shareholding and Indices Impact:

Post-settlement, public ownership in Bloomberry will decrease to 29.07% from 37.17% as SPI is a wholly-owned subsidiary. Laneda highlighted that this reduction may affect Bloomberry’s weighting in stock indices, including its membership in the PSE Index.

Background of Dispute:

The dispute traces back to GGAM’s removal from Solaire’s management in 2013, which GGAM contended was unjust. Bloomberry terminated GGAM’s management contract, citing breaches in their agreement.

GGAM initiated arbitration proceedings, asserting a claim to an 8.7% stake in Bloomberry. The arbitration court ruled in GGAM’s favor in 2016, affirming its stake and alleging that Bloomberry had violated the management services agreement.

The settlement brings closure to a complex and protracted legal saga, marking a significant development for both parties involved.

As Bloomberry moves forward, the resolution of this dispute is expected to pave the way for renewed focus on its core operations and strategic growth initiatives.


Allen holds a Master's degree in English Literature and boasts seven years of experience as a content writer. Specializing in Entertainment, Sports, and the latest news, he excels in crafting compelling narratives that captivate audiences. Allen's expertise in language and storytelling ensures that his content is both informative and engaging.

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