Donaco International Ltd., an Australia-listed operator of boutique casinos across the Asia-Pacific region, announced that it has raised the amount of AUD92.4 million or US$71.8 million by means of placing shares to institutions via the so-called entitlement offer.
Yesterday, the company informed the Australian Securities Exchange in a special filing on the matter that it had placed more than 154 million shares, which constituted 100% of the offer’s institutional component. In addition, 154 million more shares are set to be placed for trading today.
According to yesterday’s statement, the component to the entitlement offer was opened on February 9 and is scheduled to be closed two weeks later, on February 23. Moreover, the shares trading is expected to be commenced on March 3.
The company pointed out that the offer is underwritten and any entitlement shortfall will be assigned to the offer’s sub-underwriters.
On January 30, Donaco International released a filing, in which it stated that it was planning to raise US$100 million in share sale by means of an entitlement offer. The operator pointed out that its aim was to finance the purchase of the Star Vegas Resort & Club casino in the Cambodian town of Poipet.
Donaco International also said that it will pay US$360 million for the acquisition of the new gambling venue. The deal is expected to be closed sometime in April 2015. Gambling experts from across the region predicted that the purchase will prove to be profitable for the company, as the Star Vegas Resort & Club is expected to become extremely popular in the years to come. What is more, analysts believe that the venue is to report an increase in its 2014 revenue.
It seems that Donaco International executives are also optimistic about the new acquisition since the property is an already established and consolidated one and it will most certainly bring benefits to shareholders.
Donaco International is known to be the owner of the so-called Aristo International Hotel & Casino, located in Lao Cai, a city in the northern part of Vietnam, not far from the country’s border with China. The property was built back in 2002. The operator holds a 95% in the venue and a 5% stake is held by the government of Vietnam. Back in 2014, the Aristo International Hotel & Casino was expanded and upgraded to a five-star venue, featuring 428 hotel rooms and excellent gaming options.
