Universal Entertainment and Philippine property giant Robinsons Land will no longer jointly pursue development of a US$2 billion resort casino at Manila’s bayside Entertainment City complex.
The companies issued separate statements yesterday saying they decided by mutual agreement not to pursue the relationship further.
Universal, the machine gaming manufacturer controlled by Japanese billionaire Kazuo Okada, may seek a new partner or pursue the development itself, a spokesman told Reuters.
The company had been in negotiations with Robinsons Land since late last year over what would be the Philippines’ largest gaming resort. The talks were extended after they failed to close a deal by an initial January deadline, according to Reuters, which said Robinsons was looking to acquire a majority stake in Eagle I Landholdings, the Universal unit listed as owner of the 40-hectare Entertainment City site.
The deal also would have allowed Universal to resolve a dispute with the government over the ownership structure of Eagle I. An agency of the country’s Justice Department says Eagle I’s structure violates the 40% cap on foreign ownership of Philippine companies.
“As long as there is an apparent breach of the constitutional limitation on land ownership, we cannot allow the casino to open,” an executive of gaming regulator PAGCOR told Reuters.
Universal contends that it acquired the land based on legal advice obtained in the Philippines. “So this should not be an obstacle,” the company said in a statement.
The US Federal Bureau of Investigation and the Philippine National Bureau of Investigation have launched separate probes into Universal’s activities in the country following reports published by Reuters late last year tying the company to some US$40 million in alleged bribes paid to a politically connected businessman. Universal has denied any wrongdoing and is suing Reuters in Tokyo for defamation.
RelatedPosts
