Ahead of the upcoming financial results report scheduled for November 22, Universal Entertainment Corp, the parent company of Okada Manila Casino Resort operator Tiger Resort, Leisure and Entertainment Inc (TRLEI), has announced that it will probably report major losses resulting to the hostile takeover of the resort by Japanese billionaire Kazuo Okada and his group.
Universal Entertainment to Incur Major Losses Resulting from Okada Manila Saga
Universal Entertainment announced that it will most likely post losses of JPY1.6 billion ($11.5 million) and additional losses for incurred legal expenses directly stemming from the forceful takeover of the Okada Manila Casino Resort organized by the resort’s founder Japanese billionaire Kazuo Okada and his cohorts.
This amount constitutes expenses in connection with regaining control of the Okada Manila property, advertising, and litigation costs. These extraordinary losses will inevitably affect Universal Entertainment’s financial results for 2022.
The disruption of the three-month-long takeover has already delayed the announcements of the 2Q and 3Q financial results for both TRLEI and Universal Entertainment and is further expected to have an impact on the companies operating and net income.
Universal Entertainment is expected to post its 3Q results no earlier than the middle of December due to the takeover and the following issues with sorting out the financial documents.
In 2Q Universal Entertainment posted an increase of 97% in net sales in comparison to the same period last year, which corresponded to net sales of JPY 56.3 billion ($405 million). The JPY 6.77 billion ($49 million) net income reversed the JPY 16.9 billion (US$121 million) losses reported in 2Q2021.
What happened with Okada Manila Casino Resort?
Kazuo Okada entered the property on May 31 together with 50 policemen and backed by a status quo ante order (SQAO) issued by the Philippines Supreme Court. According to Okada and his group, the SQAO stipulated that the board of directors of the casino resort has to be reinstated to its composition from 2017, which included Okada himself as a member. So Okada and his companions forcefully ousted the TRLEI board and proclaimed themselves as the company’s executives.
TRLEI’s owner, Tiger Resort Asia Limited (TRAL), which holds a 99% stake in the company, immediately filed a motion for clarification against Okada.
Additionally, Universal Entertainment also took action as it is the parent company of TRAL. The company’s CEO Jun Fujimoto made a request to the Supreme Court to cancel the SQAO.
In the end, PAGCOR was forced to issue an order to Okada and his group to relinquish the Okada Manila Casino Resort back to its legal owners. TRLEI regained control over the property on September 2. In the meantime, Kazuo Okada got arrested on charges of grave coercion and is currently being detained by the Philippine authorities.