Donaco Shareholders Give the Thumbs Up to On Nut Road’s Takeover Offer

Donaco International, a company that operates leisure and entertainment businesses across the Asia Pacific region, has inched closer to becoming a part of On Nut Road as shareholders have approved the latter company’s takeover offer.

The Deal Underscores Trust in Donaco’s Long-Term Potential

On Nut Road, a Hong Kong-based, Argyle-backed special purpose vehicle, set out to acquire Donaco earlier this year, putting forward approximately $36 million (converted to USD) for the acquisition. This agreement values Donaco at roughly $0.029 per share.

The valuation of $0.029 (AUD 0.045) is significantly higher than the original price of Donaco’s shares prior to the proposal (AUD 0.030). This highlights a strong confidence in the company’s business in the long term.

The former entity already owns a 12.84% stake in the leisure giant and is looking forward to scooping up the rest.

The Proposal Appealed to Shareholders and Board Members Alike

Donaco’s shareholders have agreed to the takeover, with an overwhelming majority voting in favor of the agreement. For context, 98.11% of the company’s shareholders approved the agreement, clearing this obstacle on the way to the agreement’s finalization.

Donaco’s board has likewise expressed full support for the transaction. The company leaders have listed three main reasons for that, including regional uncertainty in its business in Cambodia due to power disruptions, tax uncertainty in the same country, and Thai border restrictions that have limited the flow of customers to Donaco’s Cambodia-based Star Vegas Resort & Club.

Additional Approval Is Needed

Now, the only thing left to do is secure approval from New South Wales’ Supreme Court. For context, the Supreme Court is set to make its decision on August 7.

Depending on this outcome, Donaco and On Nut Road could officially begin the transition on August 8 and wrap up the deal by August 19.