Morris Group Lodges New Reef Casino Trust Takeover Proposal

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Morris Group has lodged a revised takeover proposal for Reef Casino Trust, the entity that manages the Reef Hotel Casino in Cairns, Australia.

The off-market cash offer states Reef Casino Trust shareholders would receive AU$3.70 for each share they hold in the business. This equates to a total value of AUS$184.3 million (US$120.2 million).

Like the group’s initial offer, the revised proposal also includes the potential purchase of Casinos Austria International. This would be through another unit of Morris Group.

Incidentally, the latest offer mirrors the first proposal put forward by Morris Group in late July. Both are valued the same and include the purchases of both Reef Casino Trust and Casinos Austria International.

Reef Corporate Services Limited, the party responsible for Reef Casino Trust, will consider the latest offer before making further announcements.

Reef Casino Trust Still Favors Iris Capital

However, the initial reaction from Reef Casino Trust is that it still prefers a rival proposal from Iris Capital.

Proposed in mid-July by Iris Cairns Property Trust, the offer is valued at AU$3.5541 per share. This equated to a total value of AU$177 million, ahead of both Morris Group proposals.

Upon confirming the new Morris Group proposal, Reef Casino said that it maintained its recommendation for the Iris Capital offer.

“We will continue to keep the market informed of any material developments in respect of the revised alternative proposal and Iris proposal in accordance with continuous disclosure obligations,” Reef Corporate Services Limited said.