Universal Entertainment Corporation has revealed that it is considering an initial public offering of Tiger Resort Leisure & Entertainment, Inc (TRLEI), the subsidiary that operates Okada Manila.
The company’s possible plans for TRLEI formed part of a statement issued overnight in which it denied any knowledge that its former Chairman Kazuo Okada, who was ousted in June amid allegations of multiple counts of fraud, was looking to acquire the management rights of a listed company in the Philippines in which to merge Okada Manila.
“The company is not aware of any such actions by him,” Universal said, adding that “Mr Kazuo Okada resigned as a Director of TRLEI and as a Director of the company on June 16 and June 29, 2017 respectively.”
Instead, Universal revealed that, “At present, the company is reviewing the possibility of an IPO of TRLEI, and we will disclose promptly if any such plan is decided and materialized.”
Future plans for Okada Manila have been the subject of widespread speculation since Mr Okada’s ouster, with the Philippines Inquirer reporting this week that he was seeking a backdoor listing by acquiring property holding firm Bright Kindle Resources and Investments Inc.
It has also been speculated that Universal might look to sell the property bearing Okada’s name, however as reported by Inside Asian Gaming earlier this week there remain compelling reasons not to do so – including the possibility it could help the company win a Japan gaming license.
“The Okada Manila project improves Universal’s chances of winning a bid for an IR license,” Global Market Advisors Senior Partner Andrew Klebanow told IAG.
“I do not see Universal off-loading Okada Manila any time soon. This is a flagship project for the company and one that can be used to demonstrate to the IR selection committee that Universal is capable of developing and operating large-scale integrated resorts. That is going to emerge as a very important issue as Japan begins to evaluate development proposals.”
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