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Friday, March 29, 2024

Tiger tender offer blocked by an investor of Asiabest

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A minority shareholder of Asiabest Group International Inc. has asked the Securities and Exchange Commission to stop the ongoing tender offer and planned backdoor listing of Tiger Resort Asia Ltd.

ABG shareholder Carnelll Valdez in a complaint filed with the SEC on Dec. 5 asked the corporate regulator to issue a cease-and-desist order stopping Tiger Resort from completing the tender offer that could pave the way for its backdoor listing through ABG.

Valdez in the complaint accused Tiger Resorts of allegedly violating the Securities Regulation Code when it failed to disclose in a tender offer report the intra-corporate dispute involving the major shareholder of Tiger Resorts.

Okada Holdings is the controlling shareholder of Japan’s Universal Entertainment Corp., which in turn is the 100-percent owner of Tiger Resort, which fully controls Tiger Resort Leisure & Entertainment Inc., the operator of casino hotel Okada Manila.

Japanese pachinko billionaire and UEC founder Kazuo Okada and his daughter Hiromi Okada earlier initiated civil and criminal proceedings in Hong Kong to regain control of Okada Holdings and secure criminal convictions for fraud and financial crimes against those responsible for his alleged illegal ouster as chairman of Okada Holdings, UEC, Tiger Resort and Okada Holdings in 2017. 

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Okada on Aug. 29 also filed with the Parañaque Regional Trial Court an intra-corporate lawsuit against Tiger Asia, owner of Tiger Resort, and their respective directors and officers.

On Sept 11, Tiger Resort signed a deal to purchase 200 million shares in ABG, or equivalent to two-third of the company, for P646 million.

As a result, Tiger Resorts was forced to make a tender offer that started on Nov. 12 and would end on Dec. 12. The shares to be tendered will be crossed through a special block sale with the Philippine Stock Exchange on Dec. 14.

Valdez said Tiger Resort’s tender offer report did not contain any information regarding the legal proceedings initiated by Kazuo Okada and Hiromi Okada. 

Valdez said the omission of a material fact was prohibited by the SRC Rules, adding, it affected the stability and profitability outlook of ABG under the control of Tiger Resort.

If the tender offer proceeds unrestrained, this may result in grave and irreparable damage to ABG, its shareholders and investing public as the outcome of the Hong Kong legal proceedings may result in the nullification of the tender offer and backdoor listing,” said Valdez.

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