Shareholders of Donaco International have voted unanimously to sell the struggling South East Asian casino operator to Hong Kong investment vehicle trading under the name of On Nut Road (ONR).
The decision will bring an end to its turbulent run on the Australian Securities Exchange.
The AU$0.045-per-share cash offer a 50% premium to Donaco’s undisturbed share price — won the backing of 98.11% of investors at a meeting on 1 August. The Supreme Court of New South Wales has now approved the scheme, clearing the way for ‘ONR’, a subsidiary of Hong Kong fund Argyle Street Management to take ownership with other interested parties.
ONR, an investor in Donaco’s enterprise since 2019 and currently holds 12.84% of its stock, is backed by a Hong Kong-licensed fund managing over AU$3.07bn (US$2bn) in assets. Argyle Street has a track record of opportunistic bets on distressed Asian assets.
Donaco’s non-executive chairman, Porntat Amatavivadhana, said the decision was driven by “a combination of financial headwinds, limited profit margins and a lack of substantial investor confidence,” adding that “fundraising efforts for any form of growth have been particularly challenging.”
Significant challenges in Cambodia
Its flagship DNA Star Vegas property in Poipet, Cambodia — heavily dependent on Thai gamblers — has been hit by a double blow: worsening political tensions between Cambodia and Thailand that closed key border crossings, and a regulatory shake-up in Cambodia’s gaming industry.
In 2020, Cambodia introduced a new commercial gambling law aimed at attracting large-scale, licensed integrated resorts and tightening oversight of smaller operators.
While pitched as an upgrade to international standards, the law increased compliance costs, introduced stricter licensing conditions, and granted authorities broader powers to shut down non-compliant venues. Smaller operators like Donaco have faced rising operational expenses and greater scrutiny, compounding the hit from falling tourist numbers.
In June, Star Vegas saw traffic collapse 62 % year-on-year. Group EBITDA plunged 57% in the second quarter, with Star Vegas revenues falling to AU$4.31m.
Aristo International Hotel in Vietnam posted a 4.7 per cent revenue rise, but this was far from enough to offset the Cambodian slump.
Trading in Donaco shares will be suspended at the close on 8 August, with the company delisted shortly after. Shareholders on the register at 5pm AEST on 12 August will receive their payout on 19 August.
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