26 Capital Acquisition, which has been planning a merger with the operating entities of Philippines integrated resort Okada Manila, filed a lawsuit against those entities claiming they have breached their obligations under their original merger agreement.
According to details posted by Japan’s Universal Entertainment Corp – the ultimate parent company of Okada Manila – on Tuesday, the SPAC filed the lawsuit in the Delaware Court of Chancery against Universal subsidiaries Tiger Resort Asia Ltd, Tiger Resort, Leisure and Entertainment Ltd, UE Resorts International and Project Tiger Merger Sub, Inside Asian Gaming reports.
The lawsuit alleges the entities breached the obligation to complete the merger promptly under the original agreement and calls on the court to order such consummation to take place promptly.
Universal said it plans to scrutinize the details of the suit and “properly deal with it”.
The lawsuit comes after UERI and 26 Capital announced in October a 12-month extension to the merger deadline until Oct. 20.
The SPAC’s proposed acquisition of Philippines resort and casino Okada Manila has been put on hold for a year while an internal power struggle at the organization plays out.
It’s been nearly a year and a half since the SPAC and Okada Manila, the world’s only Japanese-owned integrated resort, announced merger plans in a deal valuing the casino operator at $2.6 billion. The transaction has been hamstrung by namesake founder Kazuo Okada’s often forceful efforts to reclaim his spot at the company, including a brief physical takeover of the hotel last year.
26 Capital in a September regulatory filing expanded its previous agreement with Okada Manila operator Tiger Resort Asia to “irrevocably waive” rights by either side to terminate the merger deal. Read more.
