Okada Manila, one of the most recognized casino resorts in the Philippines announced that they are now in a merger agreement with 26 Capital Acquisition Corp. The result of the merger between the Philippine casino resort and the US special purpose acquisition company (SPAC) will lead to Okada Manila becoming a publicly traded company listed under NASDAQ.
Japanese conglomerate Universal Entertainment Corp is the parent company of Tiger Resort, Leisure and Entertainment Inc, which operates Okada Manila. They’re expected to own approximately 88 percent of the company after the merger, if 26 Capital shareholders do not claim any redemptions. However, this is subject to dilution if they raise the transaction’s capital further before they complete the merger.
According to the announcement, the deal will have 26 Capital provide the resort hotel with $275 million in cash for growth opportunities, as well general corporate purposes. The announcement also implied that Okada Manila’s enterprise value is $2.6 billion.
Familiar Faces To Return After Merger
Even after the merger, Byron Yip will continue as the resort casino’s president, while Hans Van Der Sande will also be continuing as CFO. As for 26 Capital, they are currently being led by Jason Ader, who founded the investment management firm SpringOwl Asset Management LLC. He does have experience running casinos, serving as an independent director for Las Vegas Sands Corp in the past.
Yip stated in the release that they’re quite excited to realize Okada Manila’s full potential as a state-of-the-art gaming, entertainment, and hospitality facility and public company.
Meanwhile, Ader also released a statement regarding the merger, saying that because Okada Manila has the potential to lead the Philippine casino industry; it was a very compelling investment. He would also say that more is yet to come, as the company is positive of tremendous growth in the future.
Okada Manila International Inc will be the name the company will carry when they become a publicly traded company in NASDAQ. And before the merger happens, Tiger Resort, Leisure and Entertainment will become a unit of the said company. In a separate statement, Universal Entertainment Corp revealed that they are expecting to complete the merger before the end of June 2022.
They also separately revealed that Okada Manila’s gross gaming revenue (GGR) rose 59.6 percent on for the third quarter of 2021. It rose to PHP4.17 billion, which is approximately $82.2 million.