GGRAsia – Okada Manila-SPAC merger registered with U.S. regulator

Okada Manila-SPAC merger registered with U.S. regulator

Dec 13, 2021 Newsdesk Latest News, Philippines, Top of the deck, World

Japanese conglomerate Universal Entertainment Corp said in a Friday statement its subsidiary Okada Manila International Inc would file that day a registration statement with the U.S. Securities and Exchange Commission to proceed with the merger of its Philippine casino resort Okada Manila (pictured) with United States-listed 26 Capital Acquisition Corp.

In a Friday filing to Jasdaq, Universal Entertainment affirmed it expected the merger could be implemented “by the end of June 2022”.

The merger would be effected from the Japanese group’s side via Okada Manila International. The latter is to change its name to UE Resorts International Inc.

The 26 Capital entity – led by investor Jason Ader – is a special-purpose acquisition company (SPAC) listed on the Nasdaq stock market in the U.S.

According to a mid-October announcement, under the deal, 26 Capital is to provide Okada Manila with up to US$275 million in cash. The resort operator intends to use 26 Capital’s cash “for growth opportunities and general corporate purposes,” it said.

It was announced on Thursday that Okada Manila International and 26 Capital would take part in a request-for-information process linked to possible new casino licences in the south of New York State in the U.S.

The October statement regarding 26 Capital and Okada Manila International mentioned that the merger transaction implied an enterprise value for Okada Manila of US$2.6 billion.

Universal Entertainment is expected to own approximately 88 percent of the combined company at closing, assuming no redemptions by shareholders of 26 Capital.