Universal Entertainment founder Kazuo Okada has called for the Philippine Stock Exchange to fully investigate a proposed takeover deal that will see Universal subsidiary Tiger Resort Asia Ltd purchase a majority stake in listed company Asiabest Group International, Inc. (ABG).
Okada’s representatives issued a media statement this week in which Okada has called for the full details of the proposed deal, which would see Tiger Asia buy Php646.5 million worth of shares, to be made public. In particular, Okada – who holds a 34.41% stake in both Tiger Asia and Tiger Resort Leisure & Entertainment Inc. (TRLEI) – states that he was never consulted or informed of the planned takeover bid.
“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,” the mogul’s lawyers stated.
At the heart of Okada’s complaint is his recent reclamation of a controlling stake in Okada Holdings, which he founded in Hong Kong in 2010 and which owns 68% of Universal Entertainment Corp. Universal owns 99.99% of Tiger Asia which itself holds a 99.99% stake in TRLEI.
Okada was kicked off the board of all three last year amid allegations he misappropriated company funds for his own personal benefit – a move made possible by his son Tomohiro and daughter Hiromi combining their shareholding to claim a controlling stake in Okada Holdings. Hiromo has since returned to her father’s side and granted him power of attorney over her 9.78% stake – essentially lifting his holding to 56.16%.
It is with this controlling stake that Okada is now saying he would “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,” said Okada’s representatives in a letter to the Philippine Stock Exchange.
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