The operator of Okada Manila, Universal Entertainment, decided to sell its shares in Asiabest Group International Inc. (ABG) to Premiumlands Corp.
Universal Entertainment Corp., the parent company of Okada Manila operator Tiger Resort, Leisure and Entertainment Inc. (TRLEI), has announced that it will not be pursuing plans to list on the Philippine Stock Exchange (PSE).
This decision, outlined in a December 6, 2024 filing, comes as the company’s wholly-owned subsidiary, Tiger Resort Asia Ltd. (TRA), prepares to sell its entire 66.67% stake in Asiabest Group International Inc. (ABG) to Metro Manila-based real estate developer PremiumLands Corp.
The sale of 200 million shares, valued at P510.4 million (US$8.8 million), signals a significant shift in strategy for TRA. These shares were originally acquired in February 2019 as part of a backdoor listing plan for Okada Manila. At the time, the company aimed to use ABG as a vehicle to publicly list TRLEI on the PSE.
TRA cited the robust financial performance of Okada Manila in recent years as a key reason for abandoning its listing plans. “Considering that the financial performance of Okada Manila, the integrated resort operated by TRLEI, has been growing steadily and performing well in the past years, TRA has judged that the necessity of AsiaBest Group for TRLEI to be listed no longer exists,” the company stated in its filing.
Universal Entertainment’s decision to sell its stake in ABG aligns with its goal of business portfolio transformation, the company said. Despite shelving its immediate plans to list TRLEI, the group left open the possibility of revisiting the idea in the future, promising to "promptly provide notification" to stakeholders should such plans materialize.
No Immediate Financial Impact
The transaction, which is scheduled to be completed in 2025, is not expected to impact Universal Entertainment’s consolidated financial results for the fiscal year ending December 31, 2024. The delayed execution of the share transfer ensures that the company’s current fiscal year remains unaffected by the sale.
This is not Universal Entertainment’s first attempt to list its Philippine operations. In a previous effort, the company partnered with 26 Capital Acquisition Corp., a U.S.-based Special Purpose Acquisition Company (SPAC) listed on NASDAQ. The proposed merger, which would have taken Okada Manila public through a joint venture, ultimately fell through. The SPAC was liquidated, and its registration as a listed entity was terminated.
The decision to sell its ABG stake to PremiumLands Corp. reflects Universal Entertainment’s focus on optimizing its business portfolio. TRA initially acquired 200 million shares of ABG in February 2019 with plans to use it for a backdoor listing of Okada Manila.
PremiumLands, a real estate firm based in Metro Manila, will acquire full control of ABG following the transaction.
Read related article: Okada Manila Reports 33.4% Revenue Drop to $142M in 3Q 2024
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