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Universal Entertainment shares tank, chairman accused of improper loan
June 9, 2017 / 1:22 AM / 4 months ago

Universal Entertainment shares tank, chairman accused of improper loan

TOKYO (Reuters) - Shares of Universal Entertainment Corp (6425.T), a Japanese maker of slot machines, plunged as much as 13 percent on Friday after the company said it was investigating what it suspects was an improper transfer of funds by its chairman to a company he controls.

The shares were down 7.8 percent at 0102 GMT.

In a statement on Universal’s website issued under the name of the company’s president, Universal said it had found the possibility of “fraudulent acts” related to a 2015 loan of HK$135 million ($17.31 million) to an unnamed third party.

The statement says that all but HK$5 million of the loan was subsequently transferred to Okada Holdings Limited, a company controlled by Universal chairman and founder, Kazuo Okada, and his son, and that the purpose of the loan was “to achieve personal benefit for Chairman Okada.”

Reporting by Chang-Ran Kim; Editing by Chris Gallagher

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