September 11, 2018 at 07:45 pm
Jenniffer B. Austria
Japan’s Universal Entertainment Corp. prepares for the backdoor listing of its local subsidiary that operates integrated resort and casino Okada Manila, after acquiring a majority stake in listed company Asiabest Group International.
Asiabest Group said in a disclosure to the stock exchange its shareholders signed a deal with Tiger Resort Asia Ltd. for the sale of two-thirds of the company for P646 million.
Under the agreement, shareholders of Asiabest Group will sell 200 million shares to Tiger Resort by way of special block sale slated on Nov. 18.
Tiger Resort, a unit of Universal Entertainment that operates the $2.4-billion Okada Manila, will conduct a tender offer prior to the closing date of the transaction.
The Philippine Stock Exchange immediately implemented a trading suspension on Asiabest Group’s shares, as the deal was covered by the backdoor listing rule of the local bourse.
“Given the foregoing, the exchange will implement a trading suspension on ABG shares effective at 9 a.m. September 11, 2018, pending the company’s compliance with the comprehensive corporate disclosure set forth in the backdoor listing rule,” the PSE said.
From a 52-week low of P15.70 on Nov. 16, 2017, share price of Asiabest Group climbed to a 52-week high of P46 per share Monday.
Okada Manila is the third integrated resort and casino to open in Entertainment City after Bloomberry Resort’s Solaire Resort & Casino and Melco Crown’s City of Dreams.
Both Bloomberry and Melco were listed with the PSE through backdoor listing.
Melco, however, announced plans to delist its shares from the local bourse.
Universal Entertainment earlier said it was preparing to take Tiger Resort public in 2019 to accelerate its growth and raise its name recognition.
Universal Entertainment also reported that Okada Manila posted net sales of 21.64 billion yen (P10.09 billion) and operating loss of 3.020 billion yen (P1.5 billion) in the first half.