Okada asks bourse to step in as Tiger Asia readies ABG takeover
JAPANESE gaming tycoon Kazuo Okada is asking for the Philippine Stock Exchange’s (PSE) intervention in the pending takeover by Tiger Resort Asia Ltd. (Tiger Asia) of listed firm Asiabest Group International, Inc. (ABG).
In a letter sent to the PSE on Sept. 13, representatives of Mr. Okada said the public should be informed about the ongoing ownership tussle concerning Tiger Asia before it entered into a share purchase agreement with a group of ABG shareholders for the purchase of P646.5 million worth of ABG shares.
“ABG, as a publicly listed company, should make a full disclosure of its impending sale transaction with Tiger Asia, particularly that there is a legal controversy on Tiger Asia’s authority to enter into such transaction, in view of Mr. Okada’s ownership and control thereof,” according to Mr. Okada’s lawyers.
The transaction comes amid an intracorporate suit filed by Mr. Okada against Tiger Asia, Tiger Resort, Leisure, and Entertainment, Inc. (TRLEI), and their respective directors and officers at the Parañaque Regional Trial Court Branch 258 for his supposedly illegal removal as a shareholder and director of TRLEI.
TRLEI is the operator of integrated resort and casino Okada Manila in Entertainment City.
Mr. Okada was removed from his positions in Tiger Asia, TRLEI, and Japan’s Universal Entertainment Corp. (UEC) back in 2017 after his arrest by the Hong Kong Independent Commission Against Corruption for corruption-related offenses. This came after his removal as director of Okada Holdings, Ltd. in May 2017 for alleged fraudulent actions.
Okada Holdings is a firm founded by Mr. Okada in 2010 to hold his family’s shares in UEC. It currently owns 68% of UEC, which owns 99.99% of Tiger Asia. In turn, Tiger Asia owns 99.99% of TRLEI.
Mr. Okada’s representatives said he had regained control of Okada Holdings. With this, he said the acts of the would-be directors of Tiger Asia lack authority as Mr. Okada — who owns a 34.41% beneficial interest in Tiger Asia and TRLEI — will “never agree to such transaction.”
“In this regard, may we respectfully request your good office to order ABG to do a full disclosure of its share purchase transaction with Tiger Asia in order that the public will be fully informed, and Mr. Okada will be able to take the necessary steps to protect his interests in Tiger Asia,” Mr. Okada’s camp said in a letter.
The gaming tycoon warned that he would file the appropriate criminal, civil and administrative cases against those responsible for entering in the share purchase agreement.
In response, ABG said after trading hours on Wednesday that it could not submit a disclosure on the matter as it might violate proper procedures on ongoing cases.
“ABG cannot submit a disclosure on the foregoing case that may appropriately apprise the investing public of the same without transgressing the rule on sub judice which restricts any person, including the PSE, to comment and disclose matters pertaining to the judicial proceedings in order to avoid prejudging the issue, influencing the court, or obstructing the administration of justice,” the company said.
It, however, noted that shareholders were presented with documents duly authorized by Tiger Asia and UEC, which confirmed the regularity of the transaction. —