PH RESORTS Group Holdings, Inc. (PHR) has approved the issuance of 1.69 billion common shares in favor of Udenna Corp.
Udenna Group’s gaming and hospitality subsidiary will issue additional shares for the deposit for future stock subscription at P1.68 each, or the same price as the follow-on offering price of shares listed last Nov. 5, PHR said in a disclosure on Monday.
The related party transaction committee composed of three PHR directors unanimously approved the terms of the transaction.
The firm also announced that it has completed Towers A and B of Emerald Bay, its flagship casino beachfront resort in Mactan, Cebu.
Emerald Bay will be constructed in two phases, with the first phase targeted to be complete by the second quarter of 2022.
“Our timetables make the scheduled completion of the first phase of Emerald Bay ready by the time we anticipate a marked recovery in the country’s tourism and gaming sector,” PHR Chairman Dennis A. Uy said.
April Lynn C. Lee Tan, vice-president and head of research at COL Financial Group, Inc., said in an interview with ANC on Monday that she sees the Uy-led project as a long term bet, with the Mactan project not yet scheduled for completion.
“It really is a big project and it will take time, and it needs a lot of money. So I wouldn’t view the capital infusion to be something negative, because definitely the company needs capital infusion especially in this moment in time where it’s a little bit harder to borrow money and there’s much uncertainty as to how the project will perform once it opens its doors,” she said.
Shares in PHR fell three centavos or 0.99% to P3 each on Monday. — J.P. Ibañez
