Australia-listed Donaco International Limited announced it has entered into a binding Scheme Implementation Deed (SID) with On Nut Road Limited (ONR) for a full buyout of all outstanding shares in Donaco.
ONR is an investment special purpose vehicle managed by Argyle Street Management Limited (ASM), a Hong Kong-licensed fund manager with more than $2 billion in assets under its management. ONR has been an investor in Donaco since 2019 and currently holds 12.84 percent of Donaco’s issued capital.
According to a filing with the ASX, the all-cash offer is set at AU$0.045 ($0.028) per share, valuing Donaco’s equity at approximately AU$55.59 million ($35.2 million). The offer represents a 50 percent premium on Donaco’s closing price of AU$0.0300 on March 14th, 2025. It also marks a 54.10 percent premium to the 90-day volume-weighted average price (VWAP) of AU$0.0292 ($0.018).
The Donaco Board has unanimously recommended that shareholders vote in favor of the Scheme in the absence of a superior proposal and subject to an independent expert concluding that the Scheme is in the best interests of Donaco shareholders.
Donaco’s largest shareholders, Lee Bug Huy and Lee Bug Tong, who collectively hold 42.17 percent of the company’s issued capital, have indicated their support under the same conditions.
Donaco reported steady growth for the six months ending December 31st, 2024 (fiscal 1H25). Net revenue rose 12.2 percent year-on-year to AU$21.83 million ($14.19 million), while EBITDA increased 17 percent to AU$11.39 million ($7.4 million). Net profit after tax climbed 36.3 percent to AU$7.77 million ($5.05 million).
The company’s key properties, DNA Star Vegas and Aristo International Hotel, also saw gains during the period. DNA Star Vegas, located in Poipet, Cambodia — near the Thailand border — recorded AU$14.08 million ($9.15 million) in net revenue, up from AU$13.36 million ($8.68 million) from the second half of 2023. Aristo International Hotel, situated in Lao Cai, Vietnam, near the country’s border with China, posted stronger gains with net revenue reaching AU$7.76 million ($5.04 million), a 27.3 percent increase.
Donaco’s Non-Executive Chairman, Porntat Amatavivadhana, described the offer as providing compelling value for shareholders. He highlighted Donaco’s financial challenges, including narrow profit margins and limited investor confidence, which have hindered growth.
Amatavivadhana also pointed to operational concerns such as power supply disruptions along the Thailand-Cambodia border and the potential impact of Thailand’s new casino legislation as factors that could pose risks to Donaco’s future performance. He emphasized that the offer enables shareholders to realize value at an attractive premium while mitigating these uncertainties.
The date for the Scheme Meeting and further details will be announced soon.
