Belle Corp., the gaming and property unit of the Sy family, said Friday it terminated a revenue sharing agreement with bingo operator Leisure Resorts World Corp. over City of Dreams Manila.
Belle said in a disclosure to the stock exchange it would pay LRWC P5.09 billion, including P1.018 billion upon signing of a new agreement and the balance by end of March 2017.
“Under the terms of this newly signed agreement, the LRWC Group will be able to finalize its transaction with the Belle Group by the end of March 2017. Thereafter, the March 13, 2013 agreements will be deemed terminated,” Belle said.
LRWC Group signed several agreements with Belle and unit Premium Leisure and Amusement Inc. in January 2011 for the leasing, fitout and operation of an integrated casino development project at Pagcor Entertainment City in Parañaque.
The parties amended the agreements in March 2013, as Belle chose Melco Crown Entertainment Ltd., a company owned by Australian billionaire James Packer and Lawrence Ho, the son of Macau gaming mogul Stanley Ho, as the operator of the $1-billion City of Dreams Manila.
Under the amended agreements, Belle and PLAI agreed to pay the LRWC Group an amount equivalent to the 30-percent interest in the net lease income of the project and the 30-percent share in the gaming revenue.
LRWC said it planned to use the proceeds from the transaction to expand core businesses.
LRWC operates its gaming business through AB Leisure Exponent Inc. The latter operates professional bingo games through Bingo Bonanza Corp. and internet and gaming enterprises in the Cagayan Special Economic Zone through First Cagayan Leisure and Resort Corp.
Belle has been undertaking strategic moves over the past few days. Last week, the company joined a consortium that plans to build a new international airport, seaport, economic zone and mixed-used real estate development off the coast of Sangley Point in Cavite worth up to $50 billion.
Share price of Belle rose 2.3 percent Friday to close at P3.10 while LRWC gained 3.5 percent to P5.30.