Inside Asian Gaming

IAG JAPAN MAY 2019 48 ぺイバック ドナコのスターベガス買収を助けるための融資によって 共同創業者のジョーイ・リム氏は自身の持ち株を失った Payback Co-founder Joey Lim lost his shares through a loan to help Donaco acquire Star Vegas J oey Lim founded Donaco (ASX ticker DNA) in 2002 with his late grandfather, Genting Group patriarch Lim Goh Tong. As Managing Director and CEO, Lim spearheaded Donaco’s expansion in Lao Cai, Vietnam, and acquisition of Star Vegas in Poipet. In December Lim took temporary leave “to deal with medical and personal matters,” Donaco told ASX. In March, Donaco “terminated” Lim without explanation, though he remains a board member. Lim shares perspectives on Donaco with Inside Asian Gaming Editor at Large Muhammad Cohen in edited excerpts below. Not discussed were Lim’s ouster and lawsuits over his father’s estate against his uncle Lim Kok Thay, Genting’s chairman. Muhammad Cohen: Why did you take a loan from OCP Asia? Why wasn’t it paid back? Joey Lim: The OCP transaction was first conducted back in 2015. OCP granted a facility to me and my family to subscribe to the DNA rights issue raising money for the US$360 million acquisition of Star Vegas. In 2015 the pledge of shares was only one-third of the total holdings at AU$0.60. Over time, with the legal action against the Thai vendors as well as the competition from the same vendors, the DNA share price suffered and further collateral in the form of IN FOCUS shares needed to be pledged, leading to the total of my holdings being pledged in early 2018. I had been servicing the principal and interest payments in a timely manner up until late 2018 when my divorce proceedings hit me hard financially. I was unable to make one payment in November 2018 for the sum of circa US$440,000. MC: Did Donaco know Star Vegas seller Somboon Sukjaroenkraisri was building a casino across the street? Did the non-compete agreement cover that? JL: We were unaware of Somboon’s developments on his land outside of what he had sold to the company in 2015. The non-compete clause in the management contract signed with Somboon covers non-compete by him, his family members and his lands for the whole of Poipet for perpetuity. It even restricts him from leasing land to third parties for casino operations. The contracts were all signed under Singapore law as a jurisdiction, and so proceedings and enforcement will be effected in Singapore. There are several legal proceedings in Cambodia as well and I believe updates have been given to the public. Given the size of the investment by DNA and the multinational nature of the company, we have full faith in the legal system of both countries.