Bloomberry Resorts Corp, owner and operator of Manila’s Solaire Resort Entertainment City, has announced plans to raise up to US$98.7 million by way of a placing and subscription transaction involving one of its controlling shareholders, Quasar Holdings, Inc.
According to details contained in a Friday filing, the two-part transaction would initially see Quasar offer up to 559 million of its shares in Bloomberry to investors outside of the United States at an offer price of Php10 per share, suggesting a combined offer price of Php5.59 billion (US$98.7 million).
The second part of the transaction, which would take place immediately upon completion of the first, would be the subscription by Quasar, and the issuance by Bloomberry to Quasar, of new shares in the same number and at the same price as the shares sold in the Quasar offer. These shares would be issued from the authorized but unissued shares of stock of Bloomberry, the company explained.
In outlining the reasons for the equity raising, Bloomberry said it allows the company “to raise equity funds in a most expeditious and efficient manner, with the least cost to Bloomberry. The transaction is also intended to strengthen and broaden the capital base of Bloomberry, as well as to promote a wider dispersion of the shares to a broad spectrum of institutional investors.”
The initiative comes with Bloomberry preparing to open its second Philippines integrated resort, Solaire Resort North, in Quezon City in the first half of next year. It has also outlined plans to develop a third integrated resort in Cavite in the coming years.
