Genting HongKong Ltd. is selling its stake in integrated entertainment and casino Newport World Resorts, formerly known as Resorts World Manila, to long-time joint venture partner Alliance Global Group Inc. of businessman Andrew Tan.
AGI said in a disclosure to the stock exchange Tuesday subsidiary Newport World Resorts Properties Inc. signed a share purchase agreement for the acquisition of the shares of Star Cruises Philippines Holdings B.V., Asian Travellers Ltd. and Premium Travellers Ltd. in Travellers International Hotel Group Inc.
TIHGI owns and operates Newport World Resorts in Pasay City. The ultimate parent entity of the sellers is Genting HongKong which is a holding company that operates cruise and resort businesses.
Upon completion of the transactions, Genting HongKong Ltd. will cease to hold a stake in TIHGI, Westside City Inc. and Adams Properties Inc., AGI said.
The Genting HongKong group owns a 40-percent stake in TIHGI, while AGI holds the remaining 60 percent.
No other details were provided including the acquisition cost and timetable for the closing of the transactions.
TIHGI rebranded Resorts World Manila to Newport World Resorts last year as the company aggressively expands the complex with the addition of new hotels, gaming spaces, dining and retail establishments.
Newport World Resorts is a pioneer in integrated resorts development as it started operations in 2009. The property is strategically located right across Ninoy Aquino International Airport Terminal 3.
AGI, which has interests in property development, liquor manufacturing and quick service restaurant, aside from resorts and casino development, saw profit rise 20 percent in the first quarter to P4.7 billion from P3.9 billion a year ago as consolidated revenues climbed 34 percent to P50.3 billion from P37.5 billion, with all major business segments delivering creditable results.
TIHGI saw revenues soar 63 percent in the first quarter to P7.9 billion as operations normalized to pre-pandemic state.
Gross gaming revenues improved 36 percent year-on-year, while promotional allowance rose 7 percent. This resulted in net gaming revenue growth of 56 percent to P6.1 billion in the first quarter, AGI said.
Non-gaming core revenues from hotels, food, beverage and other operating income nearly doubled to P1.8 billion from P900 million a year earlier, following the increase in number of mall goers, hotel occupancy, corporate events and MICE activities.
Hotel occupancy rates at the five hotels in Newport ranged from 66 percent to 85 percent in the first quarter, according to AGI.
TIHGI earlier announced that it is moving its 2023 annual stockholders meeting originally scheduled on the second Friday of June to a later date within the year.
It said the postponement would afford the company sufficient time to finalize its agenda and prepare all reportorial requirements, including its annual report.