Weeks before the target deal closing in July, industry insiders revealed that talks for the Okada Group to rescue the stalled $300-million Emerald Bay casino of Uy’s PH Resorts Group are on the verge of collapsing, apparently due to a disagreement on commercial terms.
The problem is not the viability of the project itself but the “unrealistic” terms set by the selling party, one insider said.
For example, Uy is asking for a premium for his remaining stake in the project and repurchase rights after he sold and leased back the project land to settle massive debts owed to Sy-led China Banking Corp.
The Okada Group, through a unit of Japan’s Universal Entertainment, emerged as a white knight after investment talks with tycoon Enrique Razon Jr. and Cebu’s AppleOne Group fell through.
Okada and Uy signed a term sheet last December that outlined the conditions for the proposed majority acquisition of the Mactan, Cebu integrated resort.
Discussion seemed to be going well during the customary due diligence review, with the Okada side paying nonrefundable down payments worth over P327 million to PH Resorts.
Observers are closely watching to see if the deal can be salvaged or if Uy's casino plans will strike out.
(We've reached out to Mr. Uy's group but they declined to comment on the issue for now. We will update you, our valued readers, as soon as we hear from them.)
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
