Dennis, Cherylyn Uy hike stake in PH Resorts casino; public float, foreign holders shrink
Sunday 20th December 2020
Bilyonaryo Dennis Uy and wife, have increased their respective stakes in their casino unit, PH Resorts Group holdings, following the P2.833 billion fresh equity infusion of Udenna.
Dennis' equity stake jumped from 29 percent to 40.5 percent which is worth P8.54 billion at urrent market prices.
Cherylyn's stake rose from 8.31 percent to 11.55 percent which is valued at P2.402 billion on paper.
PH Resorts has nearly doubled from the P1.68 strike price of the couple.
Dennis and Cherylyn own 60 percent of Udenna which paid P2.833 billion for the 1.686 billion PH Resorts it subscribed to recently in the firm's folow-on offer last November.
After the transaction, Udenna's equity in PH Resorts expanded from 82 percent to 87 percent. This reduced PH Resorts public float from 17.58 percent to 13.3 percent and its foreign ownership from 5.16 percent to 3.91 percent.
In its disclosure, PH Resorts said Udenna had already deposited the amount as early as March 2019 to partially bankroll the construction of the company's flagship project, Emerald Bay Resort & Casino, and acquire Lapulapu Land Corp., the entity which owns all of the land where the Cebu casino was situated.
"The issuance of shares will benefit the company because the deposit of P2.833 billion can be booked as equity. Otherwise, if not exchanged for shares, the deposits will have to be treated as the company's liability to Udenna, which will increase the company's total debts," said PH Resorts.