Century Properties cries foul over scrapped Okada deal

Posted at 03/31/14 4:56 PM

MANILA, Philippines – Century Properties Group Inc. reiterated on Monday that the notice of termination issued by the group of Japanese gaming magnate Kazuo Okada to drop it as a partner in a $2 billion casino project is invalid.

Century Properties said the notice of termination is “unfounded and disregards the letter and spirit of the Investment Agreement” that both parties signed in 2013.

The third party in the agreement, First Paramount Holdings 888, has reportedly backed out, but Century Properties said the deal should still push through because there are alternative measures.

These measures include negotiating an alternative structure that will preserve the commercial terms of the agreement; and replacing First Paramount with another qualified Filipino company to ensure the subscription of the preferred shares.

Century Properties added that the Okada Group did not cooperate with the process with respect to providing access to due diligence materials.

“Century immediately conducted the required due diligence in its desire to close the deal for the mutual benefit of both parties, but it could not complete the said task due to the refusal of the Okada group and its counsel to provide Century reasonable access to due diligence materials,” the firm said.

The company added that it is preserving its exclusivity on the existing preferred share investment, as well as the development of the 5 hectares into a commercial and residential development, and said it is still ready to proceed with the deal “if our dispute is resolved in a constructive manner in the days to come, and if all our conditions are met to protect the interest of our shareholders.”

Century Properties officials earlier said the Okada Group sought changes to terms of the agreement that would have eliminated its exclusive rights for the luxury commercial and residential portion of the complex that it had signed on to develop.

"They were proposing something else, they wanted something else," said Kristina Garcia, director of investor relations at Century Properties.