Philippines investor, Belle Corp has terminated its revenue-sharing agreement with bingo operator Leisure Resorts World Corporation (LRWC).
Belle told the Philippine Stock Exchange on Friday that it will pay a total of P5.1 billion to LRWC for the termination of the agreement.
The operator said it had already paid LRWC P1.018 billion upon signing of the agreement, and will pay the balance at the end of 2017.
“The proceeds from the transaction are intended to be utilized by the LRWC Group on its core businesses,” said the investor.
LRWC and Belle Corp were the original partners in CoD Manila before the entry of Melco Crown in 2012.
After the entry of Melco Crown, LWRC’s wholly owned subsidiary AB Leisure Global Inc. (ABLGI) signed an amended memorandum of agreement with Belle and affiliate Premium Leisure and Amusements Inc. (PLAI). In exchange for ABLGI’s P4 billion contribution to the project, it was entitled to 30 percent of the fixed yearly income generated from the leasing of all commercial space in the project, inclusive of the hotel, retail and casino premises.
“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,” said the company in its filing.