Japanese gaming conglomerate Universal Entertainment Corp says it expects a huge uplift in profit for financial year ending December 31, 2018, as a result of a settlement agreement with Wynn Resorts Ltd regarding the 2012 cancellation at discount of Wynn Resorts stock held by Universal Entertainment unit Aruze USA Inc.
Universal Entertainment said in an English-language filing carrying Friday’s date and filed with Jasdaq that the settlement announced on Thursday would gross it US$2.63 billion.
The Japanese firm said that its annual profit was now forecast to be JPY195.5 billion (US$1.83 billion), compared to its previous estimate of JPY15.9 billion, an increase of nearly 1,130 percent on the prior lookahead.
Universal Entertainment said the change was due to “the recognition of ordinary income and net income from the proceeds based on the settlement agreement… with Wynn Resorts Ltd,” announced on Thursday by the latter company.
Universal Entertainment said the net gain from the settlement – amounting to JPY179.6 billion – was after deduction of the previously-carried book value to the Japanese conglomerate regarding its Wynn Resorts’ holding – amounting to approximately JPY48.4 billion – and after deduction of “various expenses such as attorneys’ fees” amounting to JPY228.7 million.
Universal Entertainment had clarified in another filing, also carrying Friday’s date, that Kazuo Okada, the founder and former chairman of Universal Entertainment, was not a party to the settlement announced on Thursday by Wynn Resorts.
“Nothing in the settlement agreement is intended to be construed as giving a release of any kind to Kazuo Okada. Further, the company and Wynn Resorts have agreed to reasonably cooperate with each other in any future litigation against third parties,” stated the Japanese conglomerate.
Universal Entertainment has been in dispute with its founder amid – among other things – making allegations against him of “three acts of fraudulence” in relation to company funds. Mr Okada has denied wrongdoing.
Sep 19, 2018Nowadays, millennials, people who were born in the 1980s or...
Aug 16, 2018Food and drink have been heavily marketed as part of Macau...
Jun 27, 2018Macau’s gaming law needs to be amended in order to...
Oct 23, 2018Crane Co, a United States-based industrial products conglomerate that sells payment processing technology to the financial sector including casinos, saw its third-quarter group profit jump 42.2...
Oct 23, 2018
”I don’t see this project [Lisboeta Macau] will just go for the existing market clientele. The clientele I’m going for is… family [travellers]. This is a four-star resort and the pricing will be benchmarked against other four-star hotels in Cotai.”
Director of Macau Theme Park and Resort