Hostile Takeover Saga at Okada Manila Comes to an End
LISTEN TO THIS ARTICLE:A legal battle that has continued for the past several years involving the Okada Manila in the Philippines could be finally coming to an end. A court has issued the final ruling on the legality of the hostile takeover it took in ousting its founder, Kazuo Okada, years ago.
Kazuo Okada Out of Options
Okada Manila has successfully severed ties with its founder and former chairman, Kazuo Okada. The Supreme Court of the Philippines has lifted the Status Quo Ante Order (SQAO) resulting from a lawsuit initiated by him against the company.
Related: Okada Manila Wants More International GamblersThe court determined that Okada's legal action was invalid, as it surpassed the statute of limitations for filing claims. It also supported his removal as a shareholder, director, chairperson and CEO of the company.
Furthermore, the court highlighted that Kazuo Okada does not hold a controlling stake in Okada Holdings Limited, Okada Manila's parent company. Okada Holdings, which also owns Tiger Resort, Leisure and Entertainment (TRLEI), announced the resolution of the litigation, leading to the immediate lifting of the Supreme Court's SQAO.
With this legal hurdle cleared, the company expressed its intention to resume negotiations with Philippine financial institutions and proceed with the refinancing of its privately placed notes outside Japan.
Over Six Years in the Making
The history between Kazuo Okada and Okada Manila leading to his ouster is marked by a series of contentious events. Kazuo Okada faced allegations of financial impropriety and mismanagement within the company. This prompted an internal investigation, revealing instances of unauthorized financial transactions and questionable business dealings.
In 2017, Okada was ousted from his leadership roles as shareholder, director, chairperson and CEO of Okada Manila. The company cited these financial irregularities and breaches of fiduciary duty as grounds for his removal. Subsequently, legal battles ensued between Okada and the company, further complicating the relationship.
The culmination of these disputes led to a lawsuit initiated by Kazuo Okada against Okada Manila, resulting in the imposition of SQAO by the Supreme Court. It also led him to storm Okada Manila last year with a small group of security guards to retake the Okada Manila by force.
The prolonged legal battle that ensued led different courts to reach different rulings – they sometimes sided with Kazuo Okada and sometimes with the company. However, the recent legal resolution definitively allows the company to move forward independently and pursue its financial objectives.
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