Logo of Phnom Penh Post newspaper Phnom Penh Post - Donaco’s acquisition on track for next month

Donaco’s acquisition on track for next month

Donaco’s acquisition on track for next month

Australian casino operator Donaco International said in a filing yesterday that the due diligence process for its $360 million acquisition of Star Vegas Resort and Club in Poipet has been successfully completed.

“All conditions precedent for the execution of the loan agreements have been satisfied.

The remaining conditions . . . are expected to be satisfied by 1 July 2015,” with takeover on that date, the company said. It had originally hoped to close the deal two months earlier than that.

In yesterday’s filing, the casino investor said it intends to sign agreements for a working capital facility and provide $20 million in debt funding.

“This will be used to support the working capital needs of the expanded casino operations in Cambodia and Vietnam,” the firm said.

According to the filing, Donaco’s gaming turnover in May totalled $207 million, which the company described as “robust”.

Ros Phearun, deputy director for financial industry of the Ministry of Economy and Finance, who could not be reached for comment yesterday, told the Post previously that Donaco’s investment was expected to tap the rise in Thai gamblers visiting the Kingdom – 90 per cent of gamblers in the Poipet region are Thai nationals.

Donaco, which runs the Aristo International Hotel, a boutique casino in northern Vietnam, announced the acquisition on January 30 and said the deal would help cater to the Thai market, as Star Vegas hosts travellers from Thailand.

Star Vegas is a fully operational casino and hotel with 109 gaming tables, 1,264 slot machines, and 385 hotel rooms, with more than 5,000 visitors per day on average,
To fund the $360 million acquisition, the company said in May that it had raised $101 million from shareholders and agreed on a $100 million loan from Mega International Commercial Bank.

The National Assembly is expected to approve a casino management bill by the end of the year in a bid to double the revenues of the casino sector and to ensure compliance with international standards.

Last year, a total of 59 casinos generated more than $25 million for the Cambodian government.

MOST VIEWED

  • Angkor lifetime pass, special Siem Reap travel offers planned

    The Ministry of Tourism plans to introduce a convenient, single lifetime pass for foreign travellers to visit Angkor Archaeological Park and potentially other areas. The move is designed to stimulate tourism to the culturally rich province of Siem Reap as the start of the “Visit

  • Bosba: The first Khmer woman composer from UK’s Cambridge

    Bosba Panh is just 25 years old, but she’s already accomplished some impressive milestones for herself and the Kingdom. On July 24, she graduated with a Master’s degree from the University of Cambridge as the first Khmer woman composer and Khmer music graduate ever at

  • ‘Golden’ Angkor Wat likely due to natural phenomenon: ANA

    Pictures and video clips of the Angkor Wat temple, its spires seemingly coated in gold, have been shared tens of thousands of times on social media, prompting a sense of wonder among those who have seen them. Hong Sam Ath, who took the pictures and

  • Pailin longan winery tries to break through to the big time

    Longan aren’t quite as glamorous as some fruits. They don’t have the star-power of mangos or generate the excitement of a pricey seasonal niche fruit like the pungent durian. Unlike bananas or oranges, which are known and loved everywhere, longan remains a decidedly

  • Debt restructuring over, time to tackle rising NPL ratio

    The Cambodian banking system has just completed a 26-month debt restructuring exercise where scores of loan accounts were revised, classified and provisioned as the rate of non-performing loans inched up, sparking a slight credit risk unease Implemented in April 2020, the Covid-19 debt restructuring measures came

  • Koh Slaket studio resort brings culture with style

    Davitra (Cambodia) Co Ltd’s multi-million-dollar 13ha Koh Slaket studio-cum-resort just east of the capital was inaugurated in the first phase on August 6, providing national and international tourists with a new travel option and job opportunities for locals. The man-made cultural and scenic lakefront getaway