Okada-affiliated subsidiary group ends planned merger with U.S.-based 26 Capital
Okada’s Universal ends planned merger with U.S.-based 26 Capital. Universal claims the other party’s violations and fraudulent acts and claims damages and fees in the aftermath of the contract.
Japan-based Universal Entertainment, the parent company of integrated resort Okada Manila, recently announced that it has terminated a planned merger agreement between a group of subsidiaries led by Tiger Resorts Asia Limited and 26 U.S.-based capital acquisition companies. The end was announced last Friday.
The group consisted of Tiger Resorts Asia (TRA), Tiger Resorts, Leisure and Entertainment (TRLEI), UE Resorts International Inc, and Project Tiger Merge Sub Inc.
Universal claims to have terminated planned merger over alleged misconduct and ‘significant breach’ The merger will take shape by September this year and will put Universal on the Nasdaq as a listed company.
26 Capital, a Special Purpose Acquisition Company (SPAC), also responded to the shutdown last Monday, saying the allegations were groundless, according to a report by Asia Gaming Brief
In February, 26 Capital filed a lawsuit against its Japanese subsidiary group, accusing Universal of failing to act on a $2.5 billion merger plan unveiled as early as October 2021.
Universal responded by terminating the merger completely in March. Universal’s claims stemmed from its knowledge of fraud and violations of U.S. securities laws by 26 capitals. The Manila-based group also learned of a $25 million stock deal cancellation.
Universal also claimed that 26 Capital founders Jason Arthur met with the group’s “insincere directors” and bypassed the subsidiary group, while Arthur made a public declaration with privileged information in addition to other false statements and alleged violations.