PH Resorts crashes after Okada deal declared dead

PH Resorts [PHR 0.58, down 19.4%; 1208% avgVol] [link] disclosed that it received a termination notice from the Okada Group concerning the group’s potential acquisition of a “significant majority ownership” stake in two of PHR’s subsidiaries that operate the Emerald Bay Project. This conclusively ends the negotiations between PHR and Okada that began in December of 2023. PHR said that Okada’s termination of the deal will “give PHR the opportunity to engage with other parties” that have been unable to engage with PHR due to the exclusivity that PHR granted to Okada as part of the term sheet both parties signed. Okada is the third company in 18 months to abandon plans to acquire the failing casino project. PHR will get to keep Okada’s P300 million deposit.

MB bottom-line: It’s not like Dennis Uy can’t get any dates. He’s managed to get three entirely independent companies to swipe right on his cutesy profile pic, but it’s not a good sign that he’s gone 0-for-3 in his attempts to win a second date. It’s a terrible sign, actually, and the market seems to have agreed with that assessment. PHR’s stock price dropped 20% yesterday, erasing the final remains of the pump the stock experienced leading into the AppleOne negotiations and which was sustained with news of Okada’s interest. All that value is gone, and we’ll have to see if the stock will test its post-Razon all-time lows in the P0.50/share range. There must be something really unpleasant under PHR’s kimono. Maybe 4th time is the charm?

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