ASX-listed Donaco International has submitted an application to Australia’s Takeovers Panel to restrain two of its minority shareholders, who are currently agitating to remove the current board, from acquiring, transferring or disposing of company shares and to vest their shares for sale.
The application comes after Gerald Tan – a one-time Donaco board member and close friend of ousted company founder Joey Lim – and Patrick Tan recently issued notices calling for the removal of all current directors of the company and for them to be replaced by five individuals, including themselves.
While those notices were deemed invalid, On Nut Road Ltd – the Asian-based investment firm that recently acquired a 19.25% stake in Donaco – has called for the matter to be resolved by shareholder vote at the company’s AGM on 29 November 2019.
On Nut Road has stated it supports the current board.
In applying to the Takeovers Panel this week to subsequently block the moving of any Donaco shares by Gerald and Patrick Tan, Donaco said it “submits (among other things) that the Requisitionists and certain other persons are associated by reason of entering into a scheme for the purpose of controlling or influencing the composition of the DNA board and the conduct of DNA’s affairs, in contravention of s606 of the Corporations Act 2001 and the substantial holding notice provisions.
“DNA seeks interim orders including restraining the Requisitionists and their associates from acquiring, transferring or disposing of any DNA shares. DNA seeks final orders including vesting the DNA shares beneficially held by the Requisitionists and their associates in ASIC for sale.”
Donaco, which is also embroiled in legal battles in Cambodia, Singapore and Australia with the former Thai vendors of its Star Vegas property in Poipet, recently revealed it wants to change the name of the company to “Pan Asian Leisure Ltd” as a “public statement that we are leaving the past behind.”
