The Philippines’ largest casino, owned by an affiliate of Japan’s Universal Entertainment Corp (6425.T), does not have to complete a SPAC merger deal with 26 Capital Acquisition, a Delaware judge ruled on Thursday.
Vice Chancellor Travis Laster said the affiliate that owned Okada Manila did not have to complete the $2.5 billion deal in part because 26 Capital “engaged in conduct that should not be rewarded” by ordering the deal to close.
Laster said 26 Capital could still seek damages, which he would address at a later date.
An attorney for the casino owners said they were pleased with the ruling and an attorney for 26 Capital did not respond to a request for comment, Reuters reports.
Delaware courts have a history of ordering parties to complete their merger deals, but Laster said those were situations where the court could oversee and enforce its order which the judge said he would not be able to do.
The $2.6 billion deal was announced nearly two years ago. Since then the merger has been dogged by delays and lawsuits filed by both parties against each other.
The SPAC’s proposed acquisition of Philippines resort and casino Okada Manila was put on hold for a year while an internal power struggle at the organization played out.
The transaction has also 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 in 2022. Read more.
