26 Capital disappointed by ruling on Okada Manila merger

Sep 13, 2023 Newsdesk Latest News, Philippines, Top of the deck  

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Jason Ader, head of United States-listed 26 Capital Acquisition Corp, says the company was “disappointed” by a court ruling regarding a merger deal that would involve the listing in the U.S. of the operator of the Okada Manila casino resort (pictured in a file photo), located in the Philippine capital.

A U.S. court in Delaware ruled last Thursday that Okada Manila’s parent company, Universal Entertainment Corp, did not have to complete the merger. The judge said “multiple factors lead to that result”, according to the court ruling document, seen by GGRAsia.

The judge stated that 26 Capital – a special purpose acquisition company (SPAC) listed on the Nasdaq stock market in the U.S. – was still entitled to seek damages. He added he would address that matter at a later date, according to the document.

In February, 26 Capital sued Tiger Resort, Leisure and Entertainment Inc – the promoter of Okada Manila – and other Universal Entertainment subsidiaries, urging the prompt consummation of a previously-announced merger between the two sides.

26 Capital acknowledged in a Friday statement that the Delaware Court of Chancery had declined to force the closing of the proposed merger.

“We are disappointed by the court’s ruling as the proposed merger benefits all parties, but we remain committed to enhancing shareholder value and will continue to explore all available strategic options,” stated Mr Ader, chairman and chief executive of 26 Capital.

26 Capital said it “intends to pursue” compensation, as the court “left the door open” for the company to seek damages.

On Friday, Universal Entertainment said it expected 26 Capital to appeal the ruling on the merger topic.

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