Japanese conglomerate Universal Entertainment said in a Friday filing that there will “likely be an appeal” by United States-listed 26 Capital Acquisition Corp regarding a ruling by a U.S. court on the merger between 26 Capital and the entity overseeing the Okada Manila casino resort in the Philippines. The latter is controlled by Universal Entertainment.
In a ruling the day before, a court in Delaware said the Japanese group would not need to go ahead with a merger agreement with 26 Capital in a deal that would involve the listing in the U.S. of the operator of the Okada Manila resort.
The judge, vice chancellor Travis Laster, ruled on Thursday that “multiple factors” lead to the decision, according to the court ruling document, reports GGRAsia.
The decision not to order the merger completion was in part because 26 Capital “engaged in conduct that should not be rewarded,” said the judge.
“We are disappointed by the Court’s ruling as the proposed merger benefits all parties, but we remain committed to enhancing shareholder value and will continue to explore all available strategic options,” said Jason Ader, chairman and CEO of 26 Capital, after the judge’s ruling.
The judge stated that 26 Capital – a Nasdaq-listed SPAC – was still entitled to seek damages. He added he would address that matter at a later date, according to the document.
Ader said the SPAC would indeed pursue a ruling for damages. Read more.
