Active Alliance will use proceeds raised from a share sale to buy into Sureste Properties, Inc. which in turn owns Razon-led Bloomberry Resorts and Hotels.
This, as Active Alliance’s board of directors yesterday approved the subscription of four company shareholders, namely Razon-owned Prime Metroline Transit Corp., Top Global Systems Ltd., Falcon Investco Holdings, Inc., and Quasar Holdings, Inc., to a total of 9.21 billion Active Alliance shares at a par value of one peso apiece, the disclosure read.
Prime Metroline Transit, which bought a 75% stake in Active Alliance last year for P200 million, cornered a bulk of the subscription of 7.27 billion shares, with Top Global Systems, Falcon Investco Holdings, and Quasar Holdings subscribing to 800 million, 225 million, and 921.18 million shares each, respectively.
Prime Metroline Transit owns Sureste Properties.
Together with Andrew L. Tan-owned Travellers International Hotel Group, Inc., the SM consortium, and Tiger Resorts Leisure and Entertainment, Inc., Bloombery Resorts and Hotels is one of the four groups authorized to build in the Bagong Nayong Pilipino Entertainment City in Manila Bay, which will be operated by state-run Philippine Gaming and Amusement Corp.
In addition, Active Alliance shareholders approved changes to the company’s incorporation articles during a special stockholders meeting held in Olongapo City yesterday.
Amendments to the firm’s incorporation articles include a name change to Bloomberry Resorts Corp., a primary purpose revision to a holding company from a manufacturing firm, and an authorized capital stock hike to P15 billion — divided into 15 billion shares — from P120 million, the disclosure read.
Further, stockholders also endorsed the future listing of shares to be used for the capital hike.
As a result of Bloomberry Resort and Hotels’ debut on the local bourse via a backdoor listing, the Philippine Stock Exchange (PSE) implemented a trading suspension on Active Alliance’s shares pending the firm’s release of a comprehensive corporate disclosure specifying the transaction’s details, as per PSE rules.
Mr. Razon’s entry into the hotel and casino segment comes amid a rosy outlook for the local casino gaming industry this year.
Online brokerage 2TradeAsia.com had earlier tagged the casino gaming sector, together with infrastructure and property, as likely to incur growth despite a global slowdown, anchored on the government’s expected roll-out of public private partnerships this year.
Shares of Active Alliance surged by 16.47% to P49.50 yesterday. — F. J. G. de la Fuente