Donaco International is one step closer to its acquisition by Hong Kong-based On Nut Road, after shareholders voted overwhelmingly in favor of the takeover.
According to a Monday filing, some 98.11 percent of votes were in favor of the scheme, while 77.5 percent of shareholders present and voting voted in favor.
However, the deal is not yet done, as it still remains subject to the approval of the Supreme Court of New South Wales. A hearing on the issue is scheduled for August 7th.
If the vote goes in favor and other conditions are met, DNA indicates that it intends to lodge a copy of the orders with the Australian bourse on Friday, August 8th ‘so that the scheme will become effective on that date. The final scheme implementation is ‘expected to occur on Tuesday, 19th August’.
The scheme represents a 50 percent premium on the trading price of Donaco shares before the takeover bid was announced and a 9.8 percent premium on the June 18th price – the last day before the release of the scheme booklet.
In a separate filing, the group reiterated that the company’s board unanimously recommended that shareholders vote in favor of the buyout. The directors justified the decision on three main reasons:
-‘The impact on costs due to the Thai government’s recent actions to cut power along certain towns between Thailand and Cambodia resulting in intermitted power supply;
-The potential tax liability from possible additional tax obligations on commercial gambling in Cambodia;
-‘The impact of Thailand’s border restrictions on the Star Vegas Resort & Club operations’
Donaco International operates two border casinos: the DNA Star Vegas resort in Poipet, Cambodia, and the Aristo International Hotel in Lao Cai, Vietnam.
Currently On Nut Road – a special purpose vehicle managed by Argyle Street Management – holds 12.84 percent of the company’s issued capital.
