Donaco International Ltd. will become the owner of Star Vegas Resort and Club. The property is located in Poipet, Cambodia and the purchase itself will cost Donaco the sum of US$360 million.
The company informed the Australian Securities Exchange that as soon as all paperwork and regulatory matters are figured out, the deal will be closed. That is expected to happen no later than April.
Donaco is a boutique casino operator, which is currently managing a property, based in Lao Cai, Vietnam.
However, the current owner of the property will continue managing the venue for two more years.
That was the information revealed by the Donaco officials during a presentation, which took place along with the announcement related to the acquisition.
Actually, the name of the current owner of Star Vegas Resort and Club was mentioned in the filing, concerning the purchase. During the presentation, Donaco officials said that the “key casino management staff are ex-Genting”.
People familiar with the matter suspected that they referred to Genting Bhd, a prominent company, which has already successfully expanded its business to three continents.
Donaco executives were reached for a comment and they shared their delight in purchasing Star Vegas Resort and Club. According to them, this is an excellent opportunity for the shareholders since the venue is already a successful one so its acquisition will definitely bring considerable benefits.
As for the terms the deal was signed under, the sum of US$120 million or approximately 147 million shares, is to be received by the vendor. As much as US$40 million will be paid cash-on-hand. Тhe new debt will be equal to $100 million and the same sum will be set aside for equity financing.
As a matter of fact, the entire sum that is to be paid for the acquisition was estimated to be six times bigger than the revenues generated before EBITDA.
Market analysts hurried up to make more or less precise predictions but overall, the majority of them consider the acquisition to be profitable to Donaco. What is more, Star Vegas Resort and Club is believed to become even more frequently attended venue and a revenue increase is expected to be reported YOY.
The acquisition of Star Vegas is a great step forward for Donaco as the company can take pride in having properties near the Chinese and the Thai borders.
