27.2 percent of Donaco stock leaves family hands

Australia-listed Donaco International on Monday announced that approximately 224 million of its shares, formerly controlled by the Lim family, have now changed hands to outsiders.
In a filing to the Australian Stock Exchange on Monday, Donaco International noted that Vincent Pirana and Mitchell Mansfield have been appointed as the receivers of the 224 million shares, representing around 27.2 percent of the company’s stock.

Donaco said the share transfer will have no impact on the management or operations of the company, but said it may have an impact on the company’s loan agreement with Mega Bank, as it may deem the recent share transfer as a “change of control” under the terms of the loan agreement.

If this becomes the case, the loan may become due and payable sooner than the currently scheduled repayment dates.

Donaco said it will discuss the issue with Mega Bank.

The company also noted that Mr. Ben Lim will continue as Interim Managing Director and CEO of the company until the end of March 2019.

Donaco’s announcement comes just days after reporting a statutory loss A$36.8 million for the six months ended Dec. 31, 2018, due mainly to a non-cash impairment charge in value of the Star Vegas casino license.

Group revenue declined to A$39.7 million, due to lower VIP win rate at Star Vegas and temporary disruptions as a result of a Chinese crime syndicate at the Aristo.