Suncity Group has shared that it is an agreement to operate a casino and hotel in Manila, Philippines. The operator will work with two local companies; Westside City Resorts World and Suntrust Home Developers and the trio will steer the project forward.
Suncity is focused on ensuring the deal is formalized before critics can come up with reasons for stopping the project. For that to happen, the operator wants a waiver that will allow its operations without having the shareholders give their input. That is, Suncity will invest the company’s money into the project without a shareholder vote.
What Suncity needs is to make a $200 million quick payment to secure its position and get the Resorts World’s “right to use.” However, going by the Hong Kong Stock Exchange rules, Suncity is required to have all the shareholders’ consent before spending such a huge amount. This is where the waiver comes in as it will give the go ahead for the project.
The major shareholder is Alvin Chau Suncity’s CEO. With a 74.87% share, he has the upper hand in this decision making. Since he is in favor of the deal, he has the power to authorize the payment by writing down his approval as the controlling shareholder. A general meeting will not be required in this case since the approval has been jotted down.
Suncity’s Philippine subsidiary Suntrust Home Developers will be the entity that will sign off on the check. The sign-off will also cover the payment for the property to be used and construction expenses that will come with it.
Suntrust will receive the lease for the property and after the site has been completed, it will become the only operator and manager of the casino and hotel.
The project was inspired by the sale of three lands by the Philippine Amusement and Gaming Corporation (PAGCOR). One piece of land is located in south of Manila and measures 4 acres, the second in Paranaque’s entertainment city area measures 3.67 acres and the third piece in Cavite measures 0.8 acres.
As reported by CalvinAyre.com, the three lands go for a combined cost of $62 million.
The new areas are now considered prime land but come with a major shortcoming as announced by PAGSCOR. All the three lands have no gaming license which is a factor that Suncity and others should consider.
The corporation explained that winning bidders will still not have the right to operate businesses or gaming facilities. In simple term, the casino license is not part of the sale property thus the highest bidder will not be able to run a gaming operation or a casino.
Although Philippine President Rodrigo Duterte has eased his anti-casino policies, the country does not have a free-for-all gambling policy.
Suncity on its part wants to buy the piece of land as quickly as possible to secure its future. As for the policies, the company will know what to do after the new project takes off.