Two months ago, it was announced that the Hong Kong billionaire Tony Fung was intending to acquire the popular Reef Casino Trust, based in Australia.
However, it seems like his plans were brought to a standstill as the government in Queensland announced that the regulatory review is not likely to be completed within the deadline.
The offer, made by the magnate, expires in four days and according to the information, released by Fung’s Aquis Casino Acquisitions a week ago, the chances for it to be extended are very slim.
Meanwhile, the shares and respectively the revenue of all venues, managed by Reef Casino Trust, experienced a significant downfall and reached its lowest numbers for the last year.
If the deal was completed, Aquis would acquire two casino venues, intended to be joined to Aquis Resort in order to contribute to company’s development. Currently, Aquis’ shares are estimated to cost US$8 billion and company’s owner, Mr. Fung, said that the deal that was about to be inked has always been among his top priorities. What is more, the proposal played an important part in Aquis’ investment ventures.
Mr. Fung also added that in order to protect his company from unpleasant sequences, a thorough plan will be established and it will cover company’s investment and financial affairs for at least a few months in advance.
Although, Aquis’ offer was approved by Australian authorities, the probability a deal to be signed within the next four days is too small.
According to the official announcement, released by Aquis’ management, there is a chance for making another proposal in 2015. However, they require the Queensland Office of Liquor and Gaming Regulation take their demands into consideration and complete the probity reviews in a short notice. Yet, no specific date for the approval was announced.
Despite the fact that Aquis is likely to make another proposal, managers said that is not a sure indication of an acquisition since the new proposal needs to be carefully reviewed and discussed by the Australian gambling regulators.
One of the main reasons that have led to this outcome was the intention of Australian authorities to boost the tourism and gambling sector by making the available facilities more appealing. Although they intend to engage visitors from all over the world, their efforts are primarily concentrated on attracting Chinese tourists.
Five months ago, the regulators announced that there would be three companies that will compete for obtaining a license. Apart from Aquis, the other two pretenders were Chow Tai Fook Enterprises and Greenland Group.
