US-based Special Purpose Acquisition Company (SPAC), 26 Capital Acquisition Corp, and the holding company of Philippines integrated resort Okada Manila, UE Resorts International Inc, have announced a 12-month extension to the termination deadline of their proposed merger in order to provide additional time to close the merger transaction.
In a joint announcement, 26 Capital and UE Resorts International Inc revealed they have now agreed to extend the date on which either can terminate the transaction from 1 October 2022 until 1 October 2023.
However, both also reiterated their commitment to ensuring the merger takes place, stating, “The amendment will provide additional time to complete the transaction. Both parties remain dedicated to working to close the transaction as expeditiously as possible.”
As previously reported by Inside Asian Gaming, the proposed merger will see UE Resorts International become a publicly traded company on the NASDAQ, with Tiger Resort Asia (TRA) – the Hong Kong-registered company that currently owns 99.9% of Okada Manila operator Tiger Resort, Leisure & Entertainment Inc (TRLEI) – to retain around 80% of the share capital.
The original merger agreement, signed in October 2021, valuates the total equity value of the newly formed SPAC company at US$2.5 billion.
The extension to the termination deadline comes after the TRA-backed board of TRLEI only recently regained control of the Philippines integrated resort from a group representing company founder Kazuo Okada. Mr Okada’s representatives had taken control for a three-month period between June and September before Philippines gaming regulator PAGCOR eventually intervened.
Despite the delay, 26 Capital Corp Chairman and CEO Jason Ader said, “I remain extremely excited about this transaction and the opportunity for our investors to participate in one of the fastest growing Asian gaming markets.
“The fact that Universal Entertainment is willing to extend the agreement by a year demonstrates the dedication of both parties to complete the merger.”
