Donaco Shareholders Approve Takeover Bid by On Nut Road

Introduction to the Takeover

Donaco International, an operator of leisure and entertainment businesses across the Asia Pacific, is set to be acquired by On Nut Road after its shareholders voted in favor of the takeover offer.

Details and Significance of the Deal

On Nut Road, a special purpose vehicle backed by Argyle and based in Hong Kong, proposed to purchase Donaco earlier this year with an offer close to $36 million USD. This values Donaco at about $0.029 per share.

This proposed price is considerably higher compared to Donaco’s share price prior to the offer, which was around AUD 0.030. This premium demonstrates strong confidence in Donaco’s future business prospects.

Already owning a 12.84% stake in Donaco, On Nut Road aims to acquire the remaining shares to complete the takeover.

Strong Support from Shareholders and Board

The shareholders significantly backed the takeover with 98.11% voting in favor, marking a major step toward completing the transaction.

Donaco’s board fully supports the acquisition, citing regional uncertainties in Cambodia including issues like power disruptions, tax ambiguities, and border controls in Thailand that have impacted the customer flow to the Star Vegas Resort & Club located in Cambodia.

Pending Court Approval

The final step for the takeover is obtaining approval from the Supreme Court of New South Wales, which is scheduled to decide on August 7.

If approved, the transition process between Donaco and On Nut Road could begin as early as August 8, with the entire acquisition expected to be finalized by August 19.