Donaco shareholders OK buyout
Article Date: Wed, 06 Aug 2025 15:02:03 +0000
Article URL: https://igamingbusiness.com/casino/donaco-shareholders-ok-buyout/
Article Image: Star Vegas image
Summary
Australia-listed Donaco International’s shareholders have voted to accept a full buyout by On Nut Road (ONR), a special purpose vehicle linked to Hong Kong-based Argyle Street Management. ONR, already a 12.84% investor in Donaco, proposed AU$0.045 per share in March. The deal carries an approximately 50% premium to Donaco’s undisturbed share price and was unanimously recommended by the Donaco board.
Content summary
ONR, managed by Argyle Street Management with around AU$3.07 billion in assets under management, has been a Donaco investor since 2019. Donaco operates two Southeast Asian properties: Star Vegas in Poipet, Cambodia, and the Aristo International Hotel in Vietnam. Recent operational and financial pressures — notably a sharp drop in Star Vegas footfall after Cambodia–Thailand border tensions and a 57% fall in company-wide EBITDA in Q2 — left the company vulnerable, prompting the sale proposal.
In a 1 August filing, Donaco reported 98.11% shareholder approval for the scheme. The transaction still requires final approval from the Supreme Court of New South Wales; if sanctioned and conditions satisfied, Donaco shares would cease trading and the company would be taken private by 19 August.
Key Points
- • Shareholders approved a full takeover by On Nut Road (ONR), a vehicle of Argyle Street Management.
- • ONR already holds 12.84% of Donaco and manages about AU$3.07bn in assets.
- • The offer price is AU$0.045 per share, roughly a 50% premium to recent trading levels.
- • Donaco’s business has been hit by regional tensions — Star Vegas saw a 62% drop in Poipet traffic in June.
- • Company-wide EBITDA fell 57% in Q2; Star Vegas revenues fell to AU$4.31m while Aristo was up c.4.7%.
- • 98.11% of shareholders voted in favour; the scheme requires approval from the Supreme Court of New South Wales to complete.
- • If approved and conditions met, Donaco would be delisted and go private by 19 August.
Context and relevance
The deal is notable for investors and regional gaming operators. It reflects how geopolitical tensions and narrow margins can rapidly undermine a land-based casino operator’s value, prompting consolidation by well-capitalised private vehicles. For market-watchers, the transaction underscores the vulnerability of properties reliant on cross-border tourism and the appeal of take-private deals as a route to de-risk and restructure.
Author style
Punchy: big premium, big problems. The board backed the exit — and nearly all shareholders agreed. This is a tidy example of a small-cap regional casino being scooped up when operational headwinds meet investor fatigue.
Why should I read this?
Want the short version? Donaco’s been struggling — border tensions slashed footfall, profits plunged and fundraising got hard. A deep-pocketed investor offered a 50% premium and most shareholders jumped at the chance to cash out. If you follow casino markets, cross-border tourism risks or regional M&A, this one’s worth a quick read.
Source
Source: https://igamingbusiness.com/casino/donaco-shareholders-ok-buyout/