Universal pursues US listing through SPAC combination

first_img Subscribe to the iGaming newsletter Tags: Universal Entertainment As part of this process the operator is working to identify a SPAC through which it will list, investigating legal and tax ramifications, and whether a listing would require a change in its capital structure.  12th February 2021 | By Robin Harrison Topics: Casino & games Strategy Land-based casino Management As a result, Universal will now explore a potential listing either on the Nasdaq or New York Stock Exchange, designed to further grow its IR business and increase the corporate group’s value.  It would become the latest gaming business to go public through a SPAC transaction, following the likes of DraftKings, Golden Nugget Online Gaming and Rush Street Interactive.  The business also announced its financial results for 2020. While its pachinko machine sales business saw revenue increase, the closure of Okada Manila meant revenue dropped 27.3% year-on-year. Universal Entertainment opened the Okada Manila property in the Philippines in December 2016, and has seen performance grow steadily since.  Fertitta Entertainment, the parent company of the brick-and-mortar Golden Nugget operator Landry’s, is also listing through a combination with Fast Acquisition Corporation. This included reducing fixed expenses and ramping up marketing. These measures will now remain in place after ongoing restrictions, such as a 30% capacity limit, are eased to benefit future margins. center_img Universal did not give any indication as to when it may announce a combination and timescale for listing, though said it was likely to happen some time in its 2021. Regions: Asia US Japan Philippines While the resort was shuttered as a result of novel coronavirus (Covid-19) pandemic between March and September 2020, Universal explained that it had implemented a number of measures to boost its earnings power.  Japan’s Universal Entertainment Corporation will look to list its integrated resorts business in the US, though a combination with a special purpose acquisition company (SPAC). Management To support these plans it has struck agreements with US and Japanese financial advisory firms in preparation of a potential listing.  AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Universal pursues US listing through SPAC combination Email Addresslast_img read more