Universal Ent accused of sabotaging Okada SPAC deal
The CEO of 26 Capital says Universal Entertainment executives offered no cooperation on the US$2.6bn deal.
The Philippines.- Jason Ader, the founder of 26 Capital Acquisition Corp., has claimed in court that Universal sought to sabotage the merger of Okada Manila with SPAC 26 Capital last year. The agreement announced in October 2021 was intended to allow Universal to combine with its Philippine subsidiary Tiger Resorts Asia and list Okada on the Nasdaq.
However, Universal Entertainment called off the agreement, accusing 26 Capital of disregarding SEC laws and misleading investors. The original completion timeline for the agreement was set for June 2022 but was later changed to September 30, 2023.
Ader expressed frustration over a lack of cooperation from Universal. He claimed Universal had disregarded their commitment to make their “reasonable best efforts” to complete the transaction.
The SPAC invested US$275m in the 100-acre Okada Manila resort and casino, which carries a valuation of US$2.6bn while Universal holds an 88 per cent stake in the property. The conflict arose following the removal of billionaire Kazuo Okada, the founder of Universal, from its board and his subsequent “illegal occupation” of the resort.
Ader maintained his belief in the value of the merger and requested the judge to enforce the combination agreement. He stressed the potential of the Philippine gaming market, and the resort’s undervaluation, and said the deal was still a “great deal.”
