The developer suggests Adelaide businessman Shane Yeend is making a push.
Aussie developer Mighty Kingdom says it’s at risk of a takeover move by Adelaide businessman Shane Yeend, and has asked the Australian Takeovers Panel to restrain Yeend’s Gamestar from voting shares at an upcoming shareholder meeting.
The Herald Sun (via the legends at Kotaku Australia) reports that Mighty Kingdom is alleging Yeend — who appears to the director of both Gamestar and another associated company, Imagine Entertainment — have failed to disclose “details of their alleged association”. Mighty Kingdom continues to allege that Gamestar “continues to make false and misleading statements to the market”.
Mighty Kingdom has sent a letter to its shareholders detailing its assessment of the situation. In it, Mighty Kingdom alleges that “Gamestar and Shane Yeend continue to owe the Company $2.4 million for unpaid shares and game development work,” and that “Gamestar has only paid for around 50% of its issued shares.
“Gamestar has failed to meet its obligations resulting in termination of the Share Subscription Agreement,” it continues.
Yeend replied with correspondence of his own, saying that a single statement in Mighty Kingdom’s letter is true.
“We have not paid for 50 per cent of the shares because of their actions, although we tried to accept these issues and continually find a way forward until it was untenable,” Yeend wrote.
He cited mismanagement at Mighty Kingdom and a motive to “end the tragic mess [board chair] Michelle Guthrie has overseen since [its] listing [on the Australian Stock Exchange]”.
“If we don’t get the outcome we want for all shareholders we will fight until [Mighty Kingdom] is in liquidation, and nobody wins then except me,” Yeend wrote. “But I want us all to win.
“The core issue behind the rhetoric is simple; [Mighty Kingdom] makes bad games that don’t make money and the world has told us that.”
The Australian Takeovers Panel has yet to issue a decision, but we’ll keep you posted as we learn more.
Mighty Kingdom made headlines back in August 2022 when a report made allegations of fraud, IP theft and the unjust treatment of its employees within the company.
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