Donaco shareholders OK buyout

Summary

A large majority of Donaco International shareholders have approved a 100% buyout by On Nut Road (ONR), a special purpose vehicle managed by Hong Kong-licenced Argyle Street Management. ONR, which has been an investor since 2019 and holds roughly 12.84% of issued capital, offered AU$0.045 per share in the proposed scheme.

Donaco owns two Southeast Asian properties: Star Vegas in Poipet, Cambodia, and the Aristo International Hotel in Vietnam. The company has faced mounting financial pressure — including a 57% drop in EBITDA in Q2 and a sharp fall in visitors to Star Vegas after Cambodia–Thailand border tensions curtailed Thai travel — which the board cited when backing the sale.

Global law firm Ashurst advised Donaco. The offer was described as a c.50% premium to recent trading prices and was unanimously recommended by the board. In an ASX filing, Donaco reported 98.11% shareholder approval. Completion still requires approval from the Supreme Court of New South Wales; if granted, Donaco shares would cease trading and the company would be taken private by 19 August.

Source

Source: https://igamingbusiness.com/casino/donaco-shareholders-ok-buyout/

Key Points

• Shareholders approved a full buyout of Donaco by On Nut Road (ONR), a vehicle of Argyle Street Management.
• ONR offered AU$0.045 per share; the offer equates to about a 50% premium on recent trading prices.
• ONR already owned roughly 12.84% of Donaco and has managed assets of more than AU$3.07bn.
• Donaco’s flagship Star Vegas in Poipet saw a 62% drop in casino traffic in June amid Cambodia–Thailand tensions, hitting revenues and EBITDA.
• Company-wide, Donaco reported a 57% fall in EBITDA in Q2; Aristo in Vietnam saw a modest revenue uptick but not enough to offset losses in Cambodia.
• The deal was unanimously recommended by Donaco’s board and advised by Ashurst; 98.11% of shareholders backed the scheme.
• The Supreme Court of New South Wales must approve the scheme; if approved, trading would cease and Donaco would go private by 19 August.

Context and relevance

This deal is a clear example of consolidation driven by regional operational risk and investor sentiment. For investors and operators active in Asia, it highlights how geopolitical tensions and cross-border travel disruption can materially affect land-based casino revenues. The buyout also underlines private capital’s readiness to step in where public markets challenge recovery or growth plans.

Author style

Punchy: This is a decisive move — a premium exit for shareholders and a comeback plan off public markets for Donaco. Read the detail if you track Asian land-based operators or regional M&A.

Why should I read this?

Quick and useful: if you follow the Asian casino scene or have exposure to travel-dependent operators, this explains why Donaco’s public chapter is ending and what triggered the sale. It’s a snapshot of how politics, borders and thin margins can force consolidation — and where private capital is moving in.