Universal Ent expects 26 Capital to appeal merger ruling

Okada Manila is not obligated to proceed with its SPAC merger arrangement.
Okada Manila is not obligated to proceed with its SPAC merger arrangement.

Universal Entertainment anticipates an appeal by 26 Capital after a US court ruled against a proposed US$2.5bn merger for NASDAQ listing.

The Philippines.- Universal Entertainment Corp, the operator of Okada Manila, expects the special purpose acquisition company (SPAC) 26 Capital to appeal against a recent decision by a US court judge. The judge ruled against the completion of a proposed US$2.5bn merger aimed at listing the operator on the NASDAQ.

In a statement released on Friday, Universal Entertainment noted that while the court reserved judgment until after a trial for damages, an appeal of the decision is highly likely. The legal dispute revolves around a court order related to the ownership dispute involving Kazuo Okada.

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 court’s previous ruling found that enforcing the merger could lead to a foreign citizen risking a violation of a court order and that 26 Capital had engaged in “inequitable conduct.” Universal Entertainment asserts the legitimacy of its claims. Despite the recent court decision, the possibility remains that 26 Capital may pursue damages at a later date.

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26 Capital okada manila Universal Entertainment Corporation