An Australian-listed gaming company is considering purchasing a Cambodian casino.
Donaco International, a publicly listed leisure operations firm on the Australian Stock Exchange, said yesterday it has agreed to outline terms for the purchase of a casino business in the Kingdom. The firm did not reveal the proposed venue.
“The business proposed to be acquired is well-established and profitable, with good growth prospects,” Donaco’s November 3 statement said.
Yesterday’s statement said both parties have been granted a negotiation period lasting until early 2015. During that time, Donaco plans to complete its due diligence investigations, which will then help formulate the final terms of the deal.
Donaco’s acquisition will amount to six times the unknown Cambodian casino firm’s earnings before interest, tax, depreciation and amortisation for the financial year ending December 31, 2014.
Executive director of Donaco International, Ben Reichel, declined to comment further.
Donaco International owns a 95-per cent share in a 428-room hotel and casino located on the border of Vietnam and China’s Yunnan Province. The Vietnamese government owns the remaining 5 per cent of the Aristo International Hotel.
The firm posted strong gains at the end of the 2013-2014 Australian financial year. As of June 30, revenue totalled more than AUS$29 million, up more than 80 per cent from the previous financial year, according to the company’s latest Annual Report, which was released on October 22 which also hinted at the regional expansion bid.
“Our strategy is to take advantage of the demand for leisure and entertainment in the Asia-Pacific region, and to leverage the experience of the Board and management in the gaming sector, by seeking opportunities to invest in or acquire other similar businesses,” Donaco’s annual report states.
Donaco’s announcement comes a month after fellow Australian-listed firm, Cell Aquaculture – a onetime marine technology company – announced it was pulling out of a share-purchase deal to acquire a Bavet town casino called Roxy due to staffing difficulties.