share_log

Philippines Casino Okada Manila Going Public Via SPAC: What Investors Should Know

Benzinga Real-time News ·  Oct 15, 2021 12:00

The largest integrated resort in the Philippines will become publicly traded as part of a SPAC deal announced Friday.

The SPAC Deal: Okada Manila announced a SPAC merger with 26 Capital Acquisition Corp (NASDAQ:ADER) valuing the company at an enterprise value of $2.6 billion.

26 Capital is a SPAC led by Jason Ader, who has an extensive track record in the gaming and hospitality industry. Ader was an independent director for Las Vegas Sands Corp (NYSE:LVS) from 2009 to 2016.

About Okada Manila: Located in Entertainment City, Manila, Okada Manila is the largest integrated gaming resort in the Philippines by gross floor area and gaming floor area.

The resort has 35,000 square meters of gaming space and the capacity of 599 gaming tables and 4,263 electronic gaming machines.

“Okada Manila is at the heat of the gaming and hospitality business in Asia. We are fortunate to operate the most luxurious integrated resort in the Philippines,” Ader said in a statement. 

Related Link: MGM Gets Closer To Japan Casino: What Investors Should Know 

Growth Ahead: Okada Manila plans to expand its capacity in the resort, with full completion planned in 2022. The resort is scheduled to have 974 gaming tables and 6,890 electronic gaming machines.

The resort will also have two towers with 993 luxury hotel rooms. A retail sector will have 50 shops, a night club, an indoor beach club and over 25 restaurants when construction is completed, according to the company. 

The Entertainment City market grew 24% annually between 2013 and 2019, the company said. The gross gaming revenue for the region was $3.3 billion.

The company said it has the opportunity to expand with excess land in the Philippines and “potential participation in a future integrated resort development in Japan.”

“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,” Ader said.

ADER Price Action: ADER shares were up 0.72% at $9.85 midday Friday. 

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
    Write a comment