• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Donaco to raise US$10mln, cites urgent need of capital

Jul 03, 2020 Newsdesk Latest News, Rest of Asia, Top of the deck  


Donaco to raise US$10mln, cites urgent need of capital

Australia-listed casino operator Donaco International Ltd says it plans to raise AUD14.4 million (US$9.99 million) in fresh capital to strengthen the company’s balance sheet and to be used as immediate working capital. The firm said the exercise was due to the “urgent need of capital” because of the impact from Covid-19 on its operations, according to a Friday filing.

Donaco runs casino hotel properties in Indochina: Star Vegas Resort and Club (pictured in file photo) at Poipet on Cambodia’s border with Thailand; and Aristo International Hotel and its associated casino at Lao Cai on Vietnam’s border with China.

The company confirmed that the group’s business continues to be impacted by Covid-19-related travel restrictions, which had led to the temporary shutdown of its two properties. Only the scheme in Vietnam has meanwhile resumed operations, albeit at limited capacity.

The capital raising exercise was being undertaken “by way of fully underwritten pro rata non-renounceable entitlement offer” on the basis of one new share for every two existing shares held by eligible holders. The offer is to be conducted at an issue price of AUD$0.035 per new share, said Donaco.

The offer is fully underwritten by Lee Bug Huy and Lee Bug Tong, who currently control a 17.99-percent stake in Donaco, said the casino operator. The two investors had been in previous litigation with the Donaco group.

Via the offer or the underwriting commitments, the underwriters might increase their holding in Donaco to an aggregate amount of nearly 45.33 percent of all shares on issue on completion of the exercise. The offer is scheduled to close on July 23.

In Friday’s filing, Donaco said its directors had determined that the company was “in urgent need of capital as a result of the impact of Covid-19” on the group’s gaming operations and the requirement to make repayments to its principal lender, Mega International Commercial Bank Co Ltd. Donaco said last month that Mega Bank had agreed to a six-month deferral of a US$5-million payment which had been due on June 15.

Donaco’s non-executive chairman Mel Ashton said the new funding aligned with the company’s “key objectives of limiting debt, preserving shareholder value and providing immediate financial stability”.

“Covid-19 travel restrictions, the consequent closing of international borders, and the closure of casinos in Vietnam and Cambodia (with the casino in Vietnam now partially operational), has significantly impacted the financial position of the company,” said Mr Ashton, as quoted in the filing.

“This capital injection will enable us to stabilise our immediate financial needs, and meet the upcoming repayment requirements on our borrowings,” he added. “The implementation of our proactive cost reduction strategy and the additional equity from the capital raising will help stabilise the company’s balance sheet at a critical time.”

Subject to completion of the entitlement offer, Donaco said it would appoint Mr Lee Bug Huy and Paul Porntat Amatavivadhana as non-executive directors of the company.

Mr Ashton and Simon Vertullo, also a non-executive director, are to retire from Donaco’s board at the completion of the exercise, added the firm.


  • tweet
Related articles
  • Macau’s unemployment an instability factor to security: govt
    Macau’s unemployment an...

    May 24, 2022  

  • GEN Singapore posts US$29mln 1Q profit, up sequentially
    GEN Singapore posts US$29mln 1Q...

    May 12, 2022  

More news
  • Wynn Macau Ltd asks managers to take 10pct wage in stock
    Wynn Macau Ltd asks managers to take...

    May 24, 2022  

  • Macau op debt to hit US$25bln unless travel eased 2H: MS
    Macau op debt to hit US$25bln unless...

    May 24, 2022  


Latest News

Macau’s unemployment an instability factor to security: govt

Macau’s unemployment an instability factor to security: govt

May 24, 2022  

Macau’s unemployment rate, and the resulting social pressure, could potentially result in “instability” regarding the city’s security, said the Office of the Secretary for Security in...
Read More
Wynn Macau Ltd asks managers to take 10pct wage in stock

Wynn Macau Ltd asks managers to take 10pct wage in stock

May 24, 2022  

Macau op debt to hit US$25bln unless travel eased 2H: MS

Macau op debt to hit US$25bln unless travel eased 2H: MS

May 24, 2022  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”Resorts World Sentosa is now looking at broadening its customer base to those who engage in casual play for entertainment"

Tan Hee Teck

Genting Singapore’s president and chief operating officer



Most Popular

  • Macau GGR tax cut idea tied to China outlook: brokerageMacau GGR tax cut idea tied to China outlook: brokerage May 23, 2022
  • Review saw no irregularity in Levo Chan link: Macau LegendReview saw no irregularity in Levo Chan link: Macau Legend May 23, 2022
  • Wynn Macau Ltd asks managers to take 10pct wage in stockWynn Macau Ltd asks managers to take 10pct wage in stock May 24, 2022
  • RWS seeking to expand gaming customer base: execRWS seeking to expand gaming customer base: exec May 24, 2022
Copyright 2014-2022 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us