A judge from Delaware ruled that Universal Entertainment Corp does not need to complete its Philippine casino merger with 26 Capital Acquisition Corp. Vice Chancellor Travis Laster said that the Okada Manila owner does not need to complete the merger worth $2.5 billion.
According to the judge, 26 Capital engaged in activities that should not be rewarded. However, Laster said that the company could file for damages. According to gambling guides and news sites, he will address the issue.
According to virtual sports betting sources, the casino owners’ lawyers expressed satisfaction with the verdict. However, 26 Capital’s lawyer declined to comment.
Philippine Casino Merger Closed
While the courts in Delaware had a history of compelling parties to finalize merger agreements, Judge Laster argued that past cases included situations in which the court could monitor and execute its order. However, that was not the case with the Okada Manila merger.
According to Laster, if the sale is directed to be complete, it might go against a court ruling in the Philippines. In April 2022, as part of Okada’s case against his dismissal from Universal Entertainment, the Philippine Supreme Court ruled in favor of the Japanese pachinko tycoon’s return to the helm of the casino owner. Laster added that closing the contract by order would be a reward for bad behavior.
He claimed it was never brought to the casino owners’ attention because the deal consultant, Alex Eiseman, founder of the Zama Capital hedge fund, also held more than 60% of a 26 Capital subsidiary. Laster said that Eiseman and 26 Capital were involved in a plot to deceive Universal by negotiating a low price for the casino. Eiseman’s attorney declined to comment when contacted.
According to betting odds experts, the transaction would have brought the casino $275 million in revenue if it had gone through. In late 2016, Okada Manila opened as the largest of four multibillion-dollar casino resorts in the Philippines’ capital.