MANILA
Expanding beyond its home base, Bloomberry can tap into a bigger North Asian market led by rising Chinese tourism.
Bloomberry said its subsidiary Solaire Korea Co Ltd signed an agreement to acquire up to 92 percent of Golden & Luxury Co Ltd, which owns and operates T.H.E. Hotel & Vegas Casino in Jeju Island in South Korea. (bit.ly/1MGVJXM)
It also signed a deal to buy the 20.96 hectares (51.79 acres) Silmi Island covered by the Incheon Free Economic Zone west of Seoul. It is the second island to be acquired by Bloomberry, which plans to develop a leisure and tourism complex with entertainment facilities and mixed use developments. (bit.ly/1AQg5Y1)
No value for the deals was given. Both transactions are still subject to several government regulations.
"We are now slightly shifting our focus to other destinations. Although this will happen in the next few years, it is good business to start prospecting, and Korea is a likely choice because of its positive investment climate," Bloomberry Chairman Enrique Razon said in a statement.
Bloomberry, owner and operator of a $1.2 billion integrated casino-resort along Manila Bay, will introduce the Solaire brand to South Korea, said Razon, who is also chairman of International Container Terminal Services Inc (ICT.PS) that has container terminal operations in 21 countries.
South Korea plans to approve two more casino resorts this year to boost tourism, with operators expected to invest at least 1 trillion won ($883.8 million) each.
Luis Limlingan, analyst at Regina Capital Development Corp in Manila, said it makes strategic sense for Bloomberry to deepen its investments outside its domestic market.
"Having more presence outside the Philippines would bode well for the company...they can tap more Koreans, Chinese and Japanese," Limlingan said.
Jeju Island attracted 2.3 million foreign tourists last year, of which 1.8 million were from China, government data showed.
Shares in Bloomberry rose as much as 2.3 percent to 10.80 pesos apiece in the first hour of trading, compared with a 0.53 percent gain in the broader index .PSI.
($1 = 1,131.5000 won)
(Reporting By Neil Jerome Morales; Editing by Miral Fahmy and Jacqueline Wong)
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