Donaco International said it’s seeking more information as to the intentions of a group that bought a 19.25 percent stake in the company and is seeking the appointment of two board directors.
On Nut Road and its associate Argyle Street Management, a Hong Kong-based hedge fund, bought the stake on June 20th from receivers to former founder Joey Lim and his brother. In a letter to Donaco, On Nut Road requested Kurkye Wong and Yan Ho Leo Chan be appointed as directors and that Donaco should refrain from making any decisions that materially change the corporate structure of the operator.
Donaco replied stating the board and management have had no previous contact with either On Nut Road, or Argyle Street.
“Accordingly, the board is not aware of ASM’s intentions for the company, or its reasons for acquiring a 19.25 percent voting interest in the company and seeking to appoint two representatives to the board.”
The Australia-listed operator said the size of the state would normally only entitle the investors to one board seat.
“The Board will now engage with ASM and with the receivers to understand ASM’s intentions, and to review the qualifications and experience of the two named candidates for appointment as directors,” it said.
“Finally, the Board states that it will do everything in its power to protect the interests of minority shareholders, and to ensure that control of the company does not pass unless all legal requirements are satisfied and an appropriate control premium is paid,” it added.
Donaco operates the Aristo International resort in Vietnam and the Star Vegas in Cambodia.