A lawsuit brought by SPAC 26 Capital against Universal Entertainment is set to begin later this month, Top 10 casino News reports. Universal Entetainment is a Japanese gaming and entertainment conglomerate, which called off the deal earlier this year. 26 Capital filed suit in February, demanding the deal be completed.
The SPAC since October 2021 has been trying to move forward on a merger with Okada Manila, now known as UE Resorts International. The deal values the casino operator at $2.6 billion.
As part of the agreement, Okada Manila was to receive up to $275 million in cash from 26 Capital, with Universal Entertainment owning around 88% of the merged company at closing.
It was stated in the initial announcement that the merger was to be completed in June 2022, but it was delayed multiple times after the controversial “illegal” takeover of Okada Manila by the casino's namesake founder Kazuo Okada's group.
The completion date was ultimately moved to September 2023, but 26 Capital, led by institutional investor and asset manager Jason Ader, filed a lawsuit in February urging the prompt consummation of the merger.
Announcing the start of the trial, 26 Capital accused the defendants of engaging in repeated contractual breaches to prevent the closing of the merger deal. Read more.