PH Resorts Group in talks with EEI over joint venture

Merkado Barkada

December 11, 2024 | 8:10am

PH Resorts Group [PHR 0.60, down 4.8%; 487% avgVol] [link], the casino resort arm of the crumbling Dennis Uy mini-empire, disclosed that its parent company, Udenna Corp., has signed a memorandum of understanding (MOU) with EEI Corp. [EEI 3.54, up 6.0%; 151% avgVol]. According to PHR, the MOU “provides an avenue for a potential partnership between EEI and PHR” regarding PHR’s Emerald Bay Resort and Casino Project (hereafter, “the Cursed Casino”). PHR said that the MOU “also paves the way for EEI to execute an agreement with PHR… to finance, construct, and complete the Emerald Bay Project, upon the execution of definitive documentation.”

MB bottom-line: You know what they say, if at first you don’t succeed with Enrique Razon, try again with AppleOne Properties, then again with Tiger Resort Leisure, then again with EEI. Perhaps EEI is somehow immune to the closet skeletons that scared away the previous three potential suitors (they were bad enough for Enrique Razon to walk away from a P1-billion deposit), or perhaps Mr. Uy has lowered his valuation sufficiently to entice this fourth suitor to hold its nose, sign an agreement, and actually do something with the Cursed Casino. Predictably, PHR’s share price has spiked around speculation of a new suitor, rising nearly 60% over two days, then falling 20% on the confirmation of EEI as that suitor. PHR is trading 40% above its all-time low of P0.45/share that it hit just a couple of months ago, but it’s down 28% YTD, down 43% over the past year, and down 91% since Mr. Uy took control of PHR from Jolliville Holdings [JOH 7.58, up 26.3%; 465% avgVol] back in 2018. It is what it is. There aren’t likely to be any “innocent” bagholders caught up in whatever crossfire happens here, so best of luck to all those who have placed their bets.

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