SEC okays Belle's P5.265-billion acquisition of leisure firm

MANILA, Philippines - The Securities and Exchange Commission has approved high-end leisure developer and gaming firm Belle Corp.’s acquisition of Premium Leisure and Amusement Inc. (PLAI) through a share-swap deal valued at P5.265 billion.

The deal involves the issuance of 2.7 billion new common Belle shares with a par value of P1 in exchange for 50,000 outstanding common shares held by the existing PLAI shareholders with a par value of P100.

The value of the 50,000 PLAI common shares shall be considered as full payment for the 2.7 billion common shares to be issued by Belle at the subscription price of P1.95 per share.

PLAI, owned by the privately-held SM Commercial Properties Inc., is part of a consortium of companies earlier granted a provisional license by the Philippine Amusement and Gaming Corp. (Pagcor) to take part in the development of a huge entertainment and leisure project at the Manila Bay reclamation area.

PLAI has committed to invest a total of $1 billion over a 25-year period in a planned integrated resort to rise on the 800-hectare Bagong Nayong Pilipino Entertainment City along Roxas Boulevard.

Belle is currently in talks with local and foreign banks and financial institutions for a P16-billion loan to fund the initial phases of the integrated resort complex.

The world-class resort will include hotels, condotels, serviced apartments, swimming pools, spa, retail shops, restaurants, theaters, indoor and outdoor theme park, parking and meeting facilities.

The SM Group will provide the entertainment facilities which include hotels, a sports arena, museum, and an oceanarium.

Leisure Resorts World Corp., which will help run the casino as the holder of the management contract for the gaming component of the project, has yet to pick a foreign partner for the planned casino complex, which is targeted to be operational in the third quarter of 2011.

The casino complex will be developed in three phases over a five-year period. The first phase will comprise the casino with around 100 VIP suites and two 15 story hotel towers of 500 rooms with a Planet Hollywood theme.

The project, when completed, is expected to boost Belle’s cashflow. Belle’s crown jewel to date is its flagship 1,500-hectare Tagaytay Highlands. It also generates equity earnings from Pacific Online Corp., the exclusive online lottery systems provider in Visayas and Mindanao, as well as from upscale property firm.