Duterte's close ally, well-known Chinese businessman Dennis Uy, is once again caught in a business dilemma. His holding company, PH Resorts Group Holdings (PHR), is facing multiple crises, not only is the flagship project "Emerald Bay" on Mactan Island in Cebu embroiled in a land dispute, but its casino plan in the Clark Freeport Zone has also been aborted due to the revocation of its license.
Land ownership dispute of the Emerald Bay project: Intensified conflict between PHR and China Banking Corp
PHR had transferred a 12.3-hectare resort site on Mactan Island, Cebu, to China Banking Corp. in 2023 to settle a total debt of nearly 5.8 billion pesos, including a loan of 5.2 billion pesos and over 500 million pesos in interest.
However, the agreed repurchase right expired in March 2024, and PHR was unable to pay the repurchase fee on time. Although it attempted to negotiate other ways to repurchase, China Banking Corp. has already started looking for potential buyers and insists that the property rights now belong to the bank.
China Banking Corp. Chairman Hans Sy explicitly stated, "We have granted more than a year's grace period, and the property rights are now registered in our name." Hans is the son of Henry Sy, the founder of SM Group, and currently serves as the chairman of the executive committee of SM Prime.
PHR protested, claiming that the transaction was merely a financing arrangement and not an "actual sale." The company classified the transaction as a loan structure with a repurchase option in its financial statements and accused China Banking Corp. of temporarily raising the repurchase price from 5.74 billion pesos to 7.2 billion pesos in August last year, putting the company in a passive position.
Termination of the Clark casino project: License revoked, construction not started
Meanwhile, PHR's casino project in the Clark Freeport Zone, Pampanga, has officially failed. The temporary gaming license originally held by its subsidiary, Clark Grand Leisure Corp. (CGLC), has been revoked by the Philippine Amusement and Gaming Corporation (Pagcor).
Pagcor stated that although the decision to revoke has been made, the process is not yet finalized as the original license has not been returned. PHR responded that this move is part of a "restructuring priority project."
The project, approved in 2017, has seen no actual construction progress. According to the license agreement, Dennis Uy had promised to set up a $25 million escrow account and establish a related charity fund, but the project has been stagnant for a long time. In 2021, PHR had requested a suspension of the license to focus resources on the Cebu project, but both projects have been hindered and have now successively failed.
Business background: Dennis Uy's rise and current predicament
As a Chinese entrepreneur from Davao City, Dennis Uy has attracted widespread attention due to his close relationship with former President Rodrigo Duterte. During Duterte's administration, his business empire expanded rapidly, involving telecommunications, energy, shipping, and gaming industries.
His company, DITO Telecommunity, was once seen as a significant force challenging the duopoly in the telecommunications sector, but in March this year, DITO sold most of its shares to Singaporean investors Summit Telco Corp., and Dennis Uy's wife, Cherylyn Uy, also resigned as chief financial officer, which is widely regarded as the Uy family gradually exiting the industry.
Some commentators believe that Dennis Uy's ability to quickly break through in several monopolistic industries was inseparable from the support of the Duterte government. However, with the change of government and policy direction, his corporate group's expansion has also encountered significant obstacles. Today, the once "Duterte-era business star" is facing a severe situation with collapses in real estate, gaming, and finance.
