Okada Manila and 26 Capital Acquisition Corp have announced plans to merge in a move that will see the Philippines-based casino company go public.
Tiger Resort, Leisure and Entertainment Inc, operating as Okada Manila, has signed a merger agreement with the Miami-based special acquisitions firm that will see its stock listed on the Nasdaq via an American Depository Receipt program.
26 Capital boss Jason Ader, who is both Chairman of the Board and CEO of the firm, will lend his industry expertise to Okada following the merger, with the Asian gambling giant hoping his addition will help unlock value and drive growth opportunities.
“Okada Manila is the future of the gaming market in Asia and poised for tremendous growth,” said Ader.
“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 Okada Manila is an extremely compelling investment.”
The transaction implies an enterprise value for the casino company of $2.6bn, with an additional $2.5bn in equity value, while the agreement is expected to provide Okada with a further $275m in cash, a major boon for the already rapidly growing business.
Universal Entertainment Corp, the parent company of Okada, currently owns 100% of its equity and is expected to control approximately 88% of the combined company once the deal is closed.
Current Okada President Byron Yip will continue to lead the company after the merger is finalised, with the executive commenting: “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 realise 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.”