By James A. Loyola
Gaming firm Leisure and Resorts World Corporation (LRWC) reported that its stockholders have approved the firm’s planned private placement of shares worth about P4.5 billion to P5 billion.
In a disclosure to the Philippine Stock Exchange, the firm said shareholders approved the issuance of up to 1.3 billion common shares from the unissued capital stock (Newly Issued Shares) through a private placement.
The private placement will be made at a price based on a premium over the P3.30 per share closing price of the shares of the Company on November 29, 2018.
During the firm’s special stockholders’ meeting, its also secured shareholder approval to grant authority to the Board of Directors to implement the private placement including the determination of the issue price and the subscriber or subscribers to the shares to be issued.
Proceeds from the private placement of shares will be used to refinance some of LRWC’s existing obligations and for general corporate purposes.
LRWC is planning to develop a casino resort project in Boracay in partnership between Macau’s Galaxy Entertainment Group (GEG).
In a statement, LRWC said the integrated resort will redefine the standards of luxury resorts in the country with bulk of its gross floor area allocated for premium hotel rooms and other amenities like wellness centers, bars, lounges and fine dining restaurants.
Based on the resort’s conceptual design, the casino and gaming area’s maximum footprint will not exceed 7.5 percent of the total floor area of the resort “at all times”.
“Thus, the planned Boracay Resort is expected to churn more revenues from the hotel and other ancillary businesses vis-a-vis the gaming segment as it attracts customers all over the region looking for luxury Asian destinations,” Atty. Katrina Nepomuceno, LRWC VP for Legal said.
She added that GEG and LRWC are expected to leverage on Galaxy’s database of clients across the region and the rest of Asia.
Specifically, they are targeting families and clients from Galaxy’s loyalty program to contribute approximately 50 percent of the customers, while other travellers to Boracay — Chinese tourists in particular — will account for the other half.