Bloomberry completes sale of Jeju casino unit

Title Bloomberry Completes Sale of Jeju Casino Unit for KRW10 Billion

Blog Post

In a major development, Bloomberry Resorts Corp. has announced the successful completion of the sale of its South Korean indirect subsidiary, Golden & Luxury Co. Ltd., to Gangwon Blue Mountain Co. Ltd. for a total consideration of KRW10 billion (approximately PHP400 million). This significant transaction marks a strategic shift in Bloomberry's focus, as the company exits the casino business on Jeju Island.

Demerger and Gaming License Transfer

Prior to the sale, a series of transactions took place, including the signing of a share purchase agreement in October last year. As part of the deal, Golden & Luxury transferred the gaming license and gaming business of Jeju Sun Hotel & Casino to a new company called Heaven Co. Ltd. The demerger has been completed, and the gaming business has been transferred to Heaven Co.

Initial Payment and Remaining Consideration

The buyer, Gangwon Blue Mountain Co. Ltd., has completed the initial payment of KRW7 billion, and Golden & Luxury has transferred ownership of the Heaven shares on March 4. The remaining KRW3 billion of the purchase price will be paid by the buyer to Golden & Luxury on or before February 27, 2027.

Heaven to Operate Casino under Lease Agreement

Heaven Co. will continue to operate the casino at Golden & Luxury's property on Jeju Island under a lease agreement until a new location is secured. This allows Golden & Luxury to exit the casino business on Jeju Island while retaining ownership of the real estate properties, including gaming space leased to Heaven Co.

Real Estate Properties and Ongoing Operations

Golden & Luxury will continue to operate a hotel, food, and beverage outlets, as well as retain ownership of the real estate properties, including gaming space leased to Heaven Co. Bloomberry's shares dropped P0.18, or 6.57 percent, to close at P2.56 each on the day of the announcement.

Impact on Bloomberry's Operations

This transaction enables Bloomberry to focus on its other interests, including its flagship Solaire Resort Entertainment City in Parañaque and the recently opened Solaire Resort North in Quezon City. The company's shares dropped P0.18, or 6.57 percent, to close at P2.56 each on the day of the announcement.

Conclusion

In conclusion, Bloomberry's sale of its Jeju casino unit marks a significant shift in the company's focus, as it exits the casino business on Jeju Island. The transaction allows Bloomberry to concentrate on its other interests, including its flagship Solaire Resort Entertainment City and the recently opened Solaire Resort North.

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Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.