China is missing wildcard in $2.5 bln casino SPAC

26 Capital Acquisition

20/10/2021 03:50

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Katrina Hamlin
    HONG KONG, Oct 20 (Reuters Breakingviews) - Japan’s
Universal Entertainment plans to float its Okada Manila resort
through a shell company run by former Sands director Jason Ader.
A modest valuation will hold appeal for such a fast-developing
market. China’s closed borders, however, make it a deceptively
risky bet.
    Full view will be published shortly.
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    CONTEXT NEWS
    - Okada Manila, a Philippines-based casino resort, has
agreed to go public in the United States through a merger with
26 Capital Acquisition Corp in a deal valued at $2.5 billion,
the blank-check firm said on Oct. 15.
    - The merger is expected to provide Okada Manila with as
much as $275 million in cash, which it plans to use for growth
once Covid-19 curbs ease. Its Japanese parent company, Universal
Entertainment, will roll all its equity into an 88% stake when
the deal closes.
    - The transaction is expected to be completed in the first
half of 2022. 26 Capital is led by Jason Ader, the co-founder
and chief executive of New York-based buyout firm SpringOwl
Asset Management.
     

 (Editing by Jeffrey Goldfarb and Katrina Hamlin)
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