An independent expert has described a plan by Donaco International Ltd shareholder On Nut Road Ltd (ONR) – managed by Hong Kong’s Argyle Street Management Limited – to acquire 100% of the company’s shares it does not currently own as being in the best interests of Donaco shareholders.
Donaco – which operates the Star Vegas casino in Poipet, Cambodia, and the Aristo International casino in northern Vietnam – revealed in a Friday filing that the independent expert, BDO Corporate Finance Ltd, had prepared a report describing the Scheme of Arrangement as “fair and reasonable and in the best interests of shareholders in the absence of a superior proposal.”
Donaco’s Board of Directors has also unanimously recommended that shareholders vote in favor of the Scheme at a Scheme Meeting scheduled for 4 August 2025.
The company also stated in Friday’s filing that the Supreme Court of NSW has ordered the convening of the Scheme Meeting for Donaco shareholders to consider and vote on the proposed Scheme, and approved the distribution of an explanatory statement providing information about the proposal, including the independent expert’s report.
As previously reported by Inside Asian Gaming, the proposal by ONR – which holds 12.84% of Donaco’s issued share capital – would see it pay AU$0.045 per share, representing a 50% premium on the company’s closing price of AU$0.030 at ASX market close on Friday, 14 March, the last business day before the offer was made. The Scheme values Donaco at AU$55.59 million (US$35.2 million).
Argyle Street Management, reportedly controlled by Thai hotel billionaire Chanin Donavanik, first invested in Donaco through ONR in 2019 after acquiring shares seized from Donaco founder Joey Lim by Orchard Capital Partners, following Lim’s default on a loan repayment in November 2018.
That transaction ultimately led ONR to trigger a boardroom shake-up, which included the appointment of two of its own directors to Donaco’s board.
Donaco last week revealed it was experiencing a significant decline in headcount at Star Vegas as a result of the latest border dispute between Cambodia and Thailand.
