Australian-listed Aquis Entertainment Ltd has terminated a proposed takeover deal that would have seen Blue Whale Entertainment Pty Ltd acquire 86.99% of its issued share capital after failing to gain regulatory approval.
In an ASX filing, Aquis referred to the terms of the original transaction agreement under which the agreement was liable to be canceled should ACT regulatory approvals not be obtained by 21 December 2019. Both parties had since discussed an extension to the expiry date for all approvals to be obtained, however Aquis revealed that no such agreement regarding an extension between the parties has been reached.
“Accordingly, Aquis and Aquis Canberra Holdings (Aus) Pty Ltd have issued a notice of termination to Blue Whale. Termination of the transaction documents will become effective on 6 February 2020,” it said.
“Following termination of the sale transaction, the board will update the group’s strategies to ensure continual improvement and growth in the business, including consideration of any new business opportunities which may arise.”
Aquis added that it is now seeking payment of an AU$280,000 “break fee” from Blue Whale as agreed in the original transaction documents.
Controlled by Hong Kong businessman Tony Fung, Aquis has been negotiating with the ACT Government to initiate an AU$330 million redevelopment of the property, including the development of two new luxury hotels plus world-class dining and shopping outlets. However, differences of opinion over the number of slot machines Casino Canberra should be allowed to install has halted progress.
