Asiabest Group International Inc., formerly AGP Industrial Corp., announced on Friday that its majority shareholder, Tiger Resort Asia Ltd., has fully divested its stake in the company. The divestment effectively ends any prospects of a backdoor listing and follow-on offering for Okada Manila, the integrated resort owned by Tiger Resort.
Tiger Resort sold its entire 66.67 percent stake in the listed company, equivalent to 200 million shares, valued at P5.24 billion based on the latest closing price, to PremiumLands Corp. The shares were originally acquired by Tiger Resort in 2018, triggering a tender offer that ended in January 2019.
Details surrounding the financial terms of the sale were not disclosed, nor was it clarified if PremiumLands’ acquisition would necessitate a new tender offer for the remaining shares of Asiabest. The move marks a significant shift for Asiabest, which has undergone several transformations in recent years.
The Philippine Stock Exchange has indefinitely suspended trading on Asiabest shares as it scrutinizes the deal.
PremiumLands, according to its website, is a real estate company under the Premium Infinite Ventures Inc. With the acquisition, the privately-held real estate venture could be listed on the stock exchange through the backdoor, opening opportunities for the company to raise capital for its projects. Premium Ventures is owned by the Chua family of Ormoc, Leyte.
Asiabest emerged from a quasi-reorganization and equity restructuring in 2011 of AGP, which significantly reduced its deficit. That same year, Asiabest entered into a management agreement with Geogen Corp., which holds mining operations in Dinapigue, Isabela. However, the agreement was terminated in 2015 after the payment of a termination fee.
In 2011, Asiabest also formed a joint venture with NiHao Mineral Resources International Inc. and Glencore International AG called GNA Resources International Limited, aimed at developing nickel deposits in the Philippines. Asiabest divested from GNA in 2017.
