Bloomberry Exits Loss-Making Casino in South Korea
After ten years of operating a struggling casino on Jeju Island, Bloomberry Resorts Corporation, helmed by entrepreneur Enrique Razon Jr., is officially divesting its gaming interests in South Korea. The Philippine-based company announced it has agreed to transfer its South Korean casino operations to Gangwon Blue Mountain Co. Ltd.
Agreement Details
In a statement to the Philippine Stock Exchange, Bloomberry confirmed that its South Korean subsidiary, Golden & Luxury Co., Ltd., has signed a share purchase agreement with Gangwon Blue Mountain Co. Ltd. This deal involves spinning off the casino operations of Jeju Sun into a new entity before selling it to the Korean firm.
Financial Aspects of the Deal
As part of the agreement, Gangwon Blue Mountain Co. has made a down payment of KRW 500 million (approximately PHP 20.5 million or USD 350,000). However, the finalization of the sale depends on meeting various conditions, including regulatory approval and the completion of the demerger.
Jeju Sun’s Operational Challenges
Bloomberry entered the South Korean market in 2015 by acquiring T.H.E. Hotel & LVegas Casino, later renamed Jeju Sun Hotel & Casino. Despite having extensive amenities, including a hotel and gaming space, Jeju Sun struggled to achieve profitability and consistently fell short compared to Bloomberry’s flagship property, Solaire Resort & Casino in Manila.
Analyst Perspectives
Industry experts view this divestment as a strategic move for Bloomberry, allowing the company to concentrate on its core operations in the Philippines. Alfred Benjamin R. Garcia from AP Securities Inc. remarked that Jeju Sun’s underperformance relative to Bloomberry’s Philippine operations makes this sale beneficial for focusing on strengthening its local business.
Previous Sale Attempts and Remaining Assets
This isn’t the first time Bloomberry has attempted to divest from Jeju. A previous deal fell through in 2016 when the buyer could not secure financing. Despite exiting the casino market, Bloomberry will retain other interests in South Korea, including agricultural land purchased by its subsidiary, Muui Agricultural Corp.
A Strategic Move Forward
Bloomberry’s exit from Jeju signifies the close of a challenging chapter for the company, enabling it to focus resources on its more lucrative ventures, notably in the Philippine gaming sector, where its Solaire brand continues to enhance the company’s growth and international standing.
