Star Vegas acquisition on track for July 1: Donaco
Australia-listed casino operator Donaco International Ltd said in a filing on Tuesday that the due diligence process for the acquisition of a border casino in Cambodia “has been successfully completed”.
“All conditions precedent for the execution of the loan agreements have been satisfied. The remaining conditions… are expected to be satisfied by 1 July 2015,” with takeover on that date, the company said. It was referring to its US$360-million acquisition of Star Vegas Resort and Club (pictured) in Poipet. It had originally hoped to close the deal two months earlier than that.
Poipet is near Cambodia’s border with Thailand. Star Vegas serves principally Thai gamblers, according to previous filings by Donaco.
In Tuesday’s filing, the casino investor also said it intends to sign agreements for a working capital facility, providing US$20 million in debt funding.
“This will be used to support the working capital needs of the expanded casino operations in Cambodia and Vietnam,” the firm said.
Donaco is currently a one-property operator, running a casino-hotel called Aristo International Hotel in Lao Cai province in Vietnam, on the country’s northern border with China.
The company also gave an update on its casino operations in Vietnam.
“Casino visitation [at Aristo International Hotel] continues to grow, reaching a new monthly record high of 10,254 players in May 2015. This is 19 percent higher than the previous monthly record, set in April 2015,” Donaco said.
According to the filing, Donaco’s gaming turnover in May totalled US$207 million, which the company described as “robust”.
“The win rate on VIP table games has continued to be volatile, reaching 1.29 percent in May, compared to the theoretical rate of 2.85 percent. This matter is being carefully monitored and reviewed by the board and management,” the firm added.
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