Nasdaq-listed 26 Capital to pursue $2.5 bln SPAC deal with Manila casino (updated)

26 Capital Acquisition

16/06/2022 03:09

* SPAC seen exposing Manila casino to broader investors
    * Casino, hotel business picking up -Okada management
    * Philippine gaming starts recovery from pandemic

 (Adds comments from spokesperson for Kazuo Okada's management)
    By Neil Jerome Morales
    MANILA, June 15 (Reuters) - The CEO of 26 Capital
Acquisition Corp  ADER.O  said on Wednesday the blank-check firm
was committed to its $2.5 billion purchase of the Philippines'
biggest integrated casino-resort, despite a wrangle for control
involving current owners.
    The 44-hectare (108-acre) Okada Manila, owned by
subsidiaries of Japan's Universal Entertainment Corp  6425.T ,
agreed in October to go public in the United States through a
merger with 26 Capital.  urn:newsml:reuters.com:*:nL4N2RB2MF
    But the deal has become mired in a long-running dispute
between Universal and its deposed chairman and founder, Kazuo
Okada. 
    That dispute took a dramatic turn on May 31 when Okada's
Filipino partners took physical control of the $3.3 billion
casino in the Philippine capital with the help of private
security guards and local police.  urn:newsml:reuters.com:*:nL1N2XO0O2
    "I believe Universal will be back in control of Okada Manila
soon," Jason Ader, chairman and CEO of Nasdaq-listed 26 Capital,
told Reuters. "Both parties plan to close this transaction."
    The seizure of the casino came after the Philippine Supreme
Court ruled in April that Okada should be reinstated as chairman
of the casino's owner and operator. 
    Universal's domestic unit, Tiger Resorts, has appealed that
ruling and what it said was an "illegal and violent" takeover. 
    A U.S. listing would give Okada Manila access to a wide
array of funds, customers and lenders, Ader said, adding
investors see potential for the Philippines to become one of the
world's leading gaming markets.
    In a statement, Vincent Lim, a spokesperson for Okada
Manila's current management, denied any violent takeover and
said since Okada's return business had improved, with high hotel
occupancy and casino gaming activities picking up. "His return
has restored and renewed confidence among its customers and
shareholders."
    The Philippines' casino sector has started to recover from
the pandemic, with gross gaming revenues up 14% to 113 billion
pesos ($2.12 billion) in 2021, though still below the record 256
billion in 2019, data from the gaming regulator showed.
    In contrast, the world's biggest gaming hub Macau in
neighbouring China, continues to reel from Beijing's
"zero-COVID" policy.
    In 2017, Okada was ousted from the board of both Universal
and its Philippine unit on suspicion of misappropriating company
funds, accusations which he has denied.
($1 = 53.3140 Philippine pesos)

 (Reporting by Neil Jerome Morales
Editing by Mark Potter, Ed Davies)
 ((neiljerome.morales@thomsonreuters.com; +632 8841 8914;))