On Nut Road Completes Acquisition of Donaco International with NSW Approval
New South Wales Approves On Nut Road’s Acquisition of Donaco International
New South Wales has granted official approval for On Nut Road Limited’s acquisition of Donaco International, allowing the transaction to move forward to its completion. Following this approval, Donaco International will be delisted from the Australian Stock Exchange on August 8.
Details of the On Nut Road Acquisition Offer
On Nut Road, a Hong Kong-based special purpose vehicle supported by Argyle, announced its plan earlier this year to purchase Donaco International for approximately $36 million USD. This offer values Donaco shares at about $0.029 each, a premium compared to their previous trading price, reflecting On Nut Road’s confidence in Donaco’s long-term prospects.
Before the acquisition, On Nut Road already held a 12.84% stake in Donaco, one of the leading leisure companies in the Asia Pacific region, and aimed to secure full ownership through this deal.
Final Regulatory Approval Secured
The Supreme Court of New South Wales has now approved the scheme of arrangement necessary for On Nut Road to finalize the acquisition. This follows strong support from Donaco’s shareholders, with over 98% approving the takeover proposal.
Donaco’s board has expressed full endorsement of the deal, citing challenges such as regional and tax uncertainties in Cambodia and restrictions at the Thai border, which have affected visitor flow to Donaco’s Star Vegas Resort & Club.
Next Steps: Acquisition Completion and Delisting
On Nut Road is set to acquire the remaining Donaco shares once the court’s approval is registered with the Australian Securities and Investments Commission on August 8. On that day, Donaco’s shares will stop trading and will subsequently be removed from the ASX.
The entire transaction is expected to conclude by August 19, with eligible shareholders receiving payment in line with the acquisition terms. Donaco has pledged to inform stakeholders promptly should there be any changes to this timeline.