Officials of a Japanese entertainment company in a merger fight over a Manila casino resort sought to improperly influence a prominent Filipino legislator to regain control of the property, a SPAC suing Universal Entertainment alleged.
In a filing Monday in Delaware Chancery Court, 26 Capital Acquisition claimed that Universal executives used “heavy luggage” to try to secure the support of Philippine House of Representatives Speaker Martin Romualdez, Bloomberg reports. They have been trying to take back control of the 100-acre Okada Manila resort and casino, valued 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 Phillipines hotel and casino last year.
26 Capital’s initial lawsuit was filed in February, nearly a year and a half after the deal was announced. That suit alleged the Okada Manila entities had breached their obligations under the merger agreement.
Okada countersued 26 Capital and its founder, Jason Ader back in March, filing with the Delaware Court of Chancery, The counterclaims call for the agreement to be terminated while also accusing Ader of fraud, of breaching US securities laws and of breaching the terms of the merger agreement.
26 Capital Acquisition called the counterclaims a “desperate litigation strategy.” Read more.
