Donaco Shareholders Approve Takeover by Hong Kong-Based Group

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Donaco International shareholders have voted overwhelmingly in favor of On Nut Road’s (ONR) proposed full acquisition of the Asia Pacific-facing casino group. The arrangement clears a critical milestone ahead of a final court hearing.

At a shareholder poll held August 1, 98.11 percent of votes cast supported the plan, representing 77.5 percent of eligible shareholders voting either in person or by proxy. The approval clears the way for ONR to acquire the remaining shares of Australia-headquartered Donaco — whose flagship resort is the Star Vegas Resort & Club (pictured) in Cambodia — it does not already own. ONR is a special purpose vehicle managed by Hong Kong’s Argyle Street Management, a fund manager with more than US$2 billion of assets under management.

The acquisition now awaits approval from the Supreme Court of New South Wales, with a hearing scheduled for August 7. If granted and final conditions are satisfied, Donaco shares will be suspended from trading on the ASX at the close of business on August 8. The transaction is expected to be completed by August 19.

Shareholders eligible for the consideration will be recorded as of 5 p.m. on August 12.

Why Donaco’s Board Supports the Sale

Donaco’s board has endorsed the offer, originally announced in March, as a strategic decision to bring stability amid ongoing volatility in Southeast Asia’s gaming markets. The company has recently faced operational challenges at its Star Vegas property in Poipet, Cambodia, due to border tensions with Thailand.

In its second-quarter results released in late July, Donaco reported a 57 percent year-on-year decline in group EBITDA. Revenue from Star Vegas dropped significantly to AU$4.31 million (US$2.79 million), impacted by Thailand’s restrictions on non-essential border crossings, which drastically reduced visitation.

While the group’s Aristo International Hotel in Vietnam posted a 4.7 percent revenue increase, the gains were insufficient to counterbalance losses in Cambodia.

Non-Executive Chairman Porntat Amatavivadhana acknowledged the company has been navigating a “challenging environment,” but pointed to Aristo’s consistent performance and signs of a potential ceasefire in the region as encouraging developments.

Pending court approval, Donaco will enter a new chapter under ONR ownership as it looks to stabilize operations and refocus on long-term growth.