Bloomberry Resorts Corp., operator of Solaire Resort & Casino, is exiting its casino venture in South Korea to streamline operations and focus on domestic expansion.

In a stock exchange disclosure on Monday, the Razon-led firm said its indirect subsidiary Golden & Luxury Co., Ltd. has signed a Share Purchase Agreement (SPA) to sell its casino business to Gangwon Blue Mountain Co., Ltd.

Under the deal, Golden & Luxury “will spin-off (Demerger) its casino business to a separate new company and then sell said new company to Gangwon Blue Mountain Co., Ltd. (Buyer).” 

The buyer has made an initial payment of KRW 500 million, equivalent to approximately P20.4 million at current exchange rates.

Bloomberry said the transaction is still subject to closing requirements.

“The completion of the transaction and payment of the purchase price shall be conditioned on completion of the Demerger, due diligence, and regulatory approvals,” it said.

Bloomberry, which owns Jeju Sun Hotel and Casino located on the holiday island of Jeju in Korea, has been refocusing on local operations as it shifts away from offshore gaming after last year’s government ban.

The company launched its online gaming platform earlier this year and ramped up activities at Solaire Resort North in Quezon City.

In the first of the year, the company’s net income fell to P1.9 billion from P4 billion a year ago as softer VIP and premium play at Solaire Entertainment City and one-off refinancing items weighed on earnings. 

The results reflected charges from the refinancing of its P40 billion loan, including P175 million in gross receipts tax-related costs and a P2.9 billion non-cash gain.