Earlier this month, Philippine casino resort Okada Manila announced it had entered into a merger agreement with a 26 Capital Acquisition Corp., a Nasdaq-listed special purpose acquisition company (SPAC).
The merger signals Okada Manila’s plan to look for expansion opportunities overseas and in Japan, according to Jason Ader, chairman and CEO of 26 Capital.
In an interview with Bloomberg, Ader said that the company will own assets beyond the Philippines in the next several years. “This company is not expecting to be just a single asset company in perpetuity,” he said.
In particular, Ader sees Okada Manila as being in a strong position to take up any potential opportunities in Japan, which is expected to name three new gaming jurisdictions next spring.
“We like the market and think we’re well positioned should something come up,” he said.
Okada Manila gets a Nasdaq listing through the merger with the special purpose acquisition company in a deal which gives it an enterprise value of $2.6 billion, reported Asia Gaming Brief. Under the terms of the transaction, parent company Universal Entertainment will have an 88 percent stake in the merged business.
Okada Manila is the largest IR in the Philippines on 50 acres in the capital’s Entertainment City zone. It features 599 gaming tables and more than 4,200 electronic gaming machines. Upon full completion in 2022, that will rise to 974 tables and 6,890 machines, AGB reported.
The merger makes Okada Manila parent Tiger Resort, Leisure and Entertainment a unit of Okada Manila International, which will be the listed entity on Nasdaq. The deal is expected to close by the end of June 2022.
