Asian casino operator Donaco International Ltd on Wednesday said it had obtained a US$100-million loan from a Taiwan bank.
Donaco said in a previous filing in January to the Australian Securities Exchange that it was acquiring the Star Vegas Resort and Club casino property in Poipet, Cambodia, for a consideration price of US$360 million.
On February 26, Donaco stated it had raised an aggregate of AUD117.3 million (US$92.1 million) from share entitlement offers, and would use it as equity in the Cambodian deal.
The newly announced loan facility is with Mega International Commercial Bank Co Ltd. The latest filing describes the lender as having a “significant presence” in Cambodia.
Donaco added on Wednesday that after “further discussions” with Mega International, the firm will be able to issue some company shares – promised as part of the Poipet deal consideration – direct to the Poipet casino’s vendor. That is subject to shareholder approval at Donaco’s extraordinary general meeting on March 27.
Previously, Donaco had planned to issue the shares via Donaco’s wholly owned subsidiary in Hong Kong where they would then have been held on trust for the vendor until completion of the deal.
It is expected that the Star Vegas Resort and Club sale will be completed in April, according to a January 30 filing by Donaco.
Donaco is currently a one-property operator, running the Aristo International casino hotel (pictured) in Lao Cai, in northern Vietnam.
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"If the [Macau casino] concessions are put up for bid, there will also be a lot of giant Chinese companies, some having nothing to do with gaming, which would like to take over these enormously successful casinos”
Professor emeritus at Whittier Law School in California, in the United States, and a visiting professor at University of Macau