Okada Manila casino resort to merge with 26 Capital in $2.6bn deal
Tiger Resort, Leisure and Entertainment (operating as Okada Manila), a casino resort in the Philippines, has agreed to merge with 26 Capital Acquisition Corp., a Miami-based blank check company, in a deal that values the former at $2.6 billion.
The deal enables Okada Manila to become a publicly-traded company, which is expected to trade on Nasdaq.
Besides, the merger deal is likely to provide up to $275 million in cash to the Filipino casino resort through cash held in the trust account of 26 Capital Acquisition.
Owned by Universal Entertainment Corporation, Okada Manila is said to be the only Japanese-owned and operated casino in the world.
The Japanese arcade game company will retain all of its current holdings in the newly publicly traded company and is expected to own nearly 88%.
Byron Yip — Okada Manila President said: “Okada Manila is at the heart of the gaming and hospitality business in Asia.
“We are fortunate to operate the most luxurious integrated resort in the Philippines, and excited to realize the full potential of this state-of-the-art facility for gaming, entertainment, and hospitality as a public company and in partnership with Jason Ader of 26 Capital.”
Okada Manila casino resort to merge with 26 Capital in $2.6bn deal. Photo courtesy of Okada Manila.
The resort is located on over fifty acres of waterfront property situated in Entertainment City, Manila. It currently has 35,500 square meters of gaming area and can operate 599 gaming tables as well as 4,263 4,263 electronic gaming machines.
The resort is located on over fifty acres of waterfront property situated in Entertainment City, Manila. It currently has 35,500 square meters of gaming area and can operate 599 gaming tables as well as 4,263 4,263 electronic gaming machines.
Once constructed, the Okada Manila casino resort will feature a couple of towers that will have 993 luxury hotel rooms, a 50-store retail boulevard, the Cove Manila night club, and an indoor beach club along with 25 plus dining options.
The casino resort in Manila cost $3.3 billion for its construction. It had started to gradually open throughout 2019 after the completion of the first hotel building.
In 2022, the full construction of the Okada Manila casino resort is expected to be wrapped up, enabling it to operate fully.
Jason Ader — Chairman of the Board of Directors and CEO of 26 Capital Acquisition said: “Okada Manila is the future of the gaming market in Asia and poised for tremendous growth.
“With its beautiful new facility, a desirable location in one of the fastest-growing gaming markets in the world, and potential for industry-leading margins and cash flow conversion, I believe the Okada Manila is an extremely compelling investment.”
The deal, which is conditional on approval of 26 Capital Acquisition’s shareholders and other customary closing conditions, is anticipated to be wrapped up in the first half of 2022.