Donaco International stockholders have given the green light to a buyout of the Asian casino operator by Hong Kong-based investment fund On Nut Road.
A majority of Donaco International shareholders have approved a full buyout offer from On Nut Road (ONR). ONR, a special purpose vehicle under Hong Kong-licensed Argyle Street Management, manages over AU$3.07 billion (US$2 billion) in assets. The firm has been a Donaco investor since 2019 and currently holds 12.84% of the company’s issued capital.
Donaco, listed in Australia, operates two casinos in Southeast Asia: DNA Star Vegas in Cambodia and the Aristo International Hotel in Vietnam. The proposed acquisition was announced on 17 March, with ONR offering AU$0.045 in cash per share. At the time, Donaco’s non-executive chairman, Porntat Amatavivadhana, pointed to “financial headwinds” such as limited profit margins and low investor confidence, which have made raising funds for growth particularly difficult.
Recent tensions between Cambodia and Thailand have intensified these difficulties. The dispute, which led to border closures for most travelers, significantly impacted operations at Star Vegas, a property that relies heavily on Thai customers. In June, Donaco reported a 62% decline in casino visits at its Poipet venue.
Across the company, EBITDA fell 57% in the second quarter. Star Vegas revenue dropped to AU$4.31 million, while Aristo saw a modest 4.7% increase—insufficient to counterbalance the sharp downturn in Cambodia.
Deal a premium for Donaco shareholders
Global law firm Ashurst advised Donaco on the planned acquisition, noting that the offer provides “a significant premium to Donaco’s undisturbed share price” and an opportunity for shareholders to reduce investment risk.
“The offer delivers a 50% premium for Donaco shareholders based on recent trading prices,” said partner Murray Wheater. “The Donaco board has unanimously recommended the scheme.”
In a 1 August filing with the Australian Securities Exchange, Donaco reported that 98.11% of shareholders voted in favor of the acquisition. The deal still requires approval from the Supreme Court of New South Wales, with a hearing scheduled for Thursday. If approved, trading in Donaco shares will cease the following day, and the company will become private by 19 August.
