Donaco shareholders approve acquisition by On Nut Road
Scheme of arrangement clears major hurdle ahead of 7 August court hearing.
Key points:
– 98.11% of shareholder votes cast support full acquisition by ONR
– Final court hearing scheduled for 7 August, implementation expected 19 August
– Comes amid ongoing financial pressure following Cambodia-Thai border disruption
Donaco International shareholders have voted overwhelmingly in favour of On Nut Road’s proposed full acquisition of the company, with the scheme of arrangement clearing a key milestone ahead of a final court hearing.
In a poll held on 1 August, 98.11% of votes cast supported the scheme, representing 77.5% of eligible shareholders voting in person or by proxy.
The resolution paves the way for On Nut Road (ONR) to acquire the remaining shares in Donaco it does not already own.
The scheme remains subject to approval from the Supreme Court of New South Wales at a hearing scheduled for 7 August.
If approved and final conditions are met, Donaco shares will be suspended from trading on the ASX at the close of 8 August, with the transaction expected to be implemented by 19 August.
Good to know: Shareholders eligible for the scheme consideration will be recorded as of 5pm on 12 August
Donaco’s board has backed the offer, originally announced in March, as a strategic move to provide stability amid volatile trading conditions in Southeast Asia.
The company has recently faced significant disruption at its flagship Star Vegas venue in Poipet, Cambodia, due to a regional border conflict with Thailand.
In its Q2 results released in late July, Donaco reported group-wide EBITDA had fallen 57% year-on-year. Revenue from Star Vegas declined sharply to AU$4.31m (US$2.79m) as Thailand imposed a ban on non-essential crossings, severely limiting footfall.
The group’s Aristo International Hotel in Vietnam showed modest revenue growth, up 4.7%, but was not enough to offset losses in Cambodia.
Non-Executive Chairman Porntat Amatavivadhana said last month that the business had been operating in a “challenging environment” but welcomed Aristo’s consistent performance and a potential ceasefire between Thai and Cambodian forces.
Pending court approval, Donaco will soon enter a new phase of ownership under ONR as it looks to stabilise operations and pursue long-term recovery.
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