Razon-led Active Alliance hikes capital

MANILA, Philippines - Shareholders of Active Alliance Inc. (AAI) have approved the increase in the firm’s capitalization to P15 billion from only P120 million.

In a disclosure to the stock exchange, AAI said businessman Enrique Razon’s Prime Metroline Transit Corp. subscribed to 7.265 billion shares out of the increase in authorized capital.

Razon acquired 75 percent of AAI from majority stockholders for P3.33 each share or a total of P200 million.

AAI intends to use the fresh capital to pay for the acquisition of 100 percent of Sureste Properties Inc. and to further expand Sureste’s hotel-casino operations.

“The purchase of 100 percent of the outstanding capital stock of Sureste Properties Inc. shall total 58,654,967 shares from Prime Metroline (inclusive of the nominal shares held by the five directors) at a price per share equivalent to its par value of P100 per share, for a total purchase price of P5.865 billion,” AAI said.

Sureste owns Bloomberry Resorts and Hotels Inc., which is building a $1 billion integrated casino and tourism facility in Pagcor Entertainment City along Roxas Blvd.

Also approved by shareholders is the change of the corporate name to Bloombery Resorts Corp. as well as the firm’s primary purpose to that of a holding company.

The project, covering an area of 8.3 hectares, features a five-star hotel, casino and gaming facilities, state-of-the-art meeting and convention venues, high-end retail and fine dining outlets, and health and wellness facilities. Retail, dining and entertainment areas are being expanded to complement the complex’s offering of a first-class resort experience.

The first phase of the project (consisting of the hotel and casino) is slated for opening in October this year.

Bloombery is one of four groups issued licenses to develop 120 hectares of prime reclaimed land along Roxas Blvd. in line with the Philippine Amusement and Gaming Corp.’s goal to catapult the Philippines as one of the premier tourist destinations in the region and the world, and boost the country’s gaming revenue currently at about $800 million per year.