Bloomberry Resorts receives US$96.4 million net funds through successful placing, subscription deal

Through a successful placing and subscription deal involving its majority shareholder, Quasar Holdings, Inc., Bloomberry Resorts Corp., the owner of Manila’s Solaire Resort in Entertainment City, has received net funds of Php5,488,000,000 (about US$96.4 million).

In this two-part transaction, Quasar issued 559 million of its Bloomberry shares to investors outside of the United States at an offer price of Php10 per share, for a total of Php5.59 billion (about US$98.7 million). In the second phase of the deal, Bloomberry issued fresh shares, and Quasar purchased the same number of shares at the same price as those offered in the Quasar offer.

According to Bloomberry, this equity fundraising deal enables them to obtain money swiftly and effectively while cutting expenses. The transaction’s goals were to increase and diversify Bloomberry’s capital base and distribute shares to a larger group of institutional investors.

After the deal was completed, public ownership of Bloomberry increased to over 37%, while Chairman and CEO Enrique Razon Jr.’s interests, including direct and indirect holdings, fell to 62.27% of the company’s outstanding shares.

By March 2024, all of the subscription’s revenues, which will be used to pay down debt, should have been distributed.

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Original story by: IAG