Donaco International Ltd Stock Market Press Releases and Company Profile

View in Other Languages Donaco International Limited (ASX:DNA) To Acquire Star Vegas Resort and Club Donaco International Limited (ASX:DNA)将收购Star Vegas 俱乐部度假酒店 Donaco International Limited (ASX:DNA)將收購Star Vegas俱樂部度假酒店 
To Acquire Star Vegas Resort and Club
To Acquire Star Vegas Resort and Club

Sydney, Jan 30, 2015 AEST (ABN Newswire) - Donaco International Limited (googlechartASX:DNA) ("Donaco") is pleased to announce that it has executed a binding acquisition agreement with Star Vegas in Poipet, Cambodia.

KEY HIGHLIGHTS

- Donaco has agreed to acquire the Star Vegas Resort & Club ("Star Vegas") in Poipet, Cambodia

- Acquisition price of US$360 million, representing a <6x CY14E EBITDA multiple

- The acquisition of Star Vegas provides Donaco with enhanced scale and diversification, as well as immediate and meaningful earnings per share accretion to Donaco shareholders

Star Vegas is the newest luxury Poipet casino hotel, and is located on the Thailand border, with the primary clientele being Thai nationals. The acquisition is planned to be completed in April 2015, subject to completion of due diligence and customary conditions precedent. Full details of the property and the acquisition are provided in the Investor Presentation lodged with the ASX today.

Consideration for Star Vegas is US$360 million which consists of the following:

- Equity issued to the Vendor: US$120 million (~147m shares);

- Existing cash-on-hand US$40 million;

- New bank debt facility US$100 million; and

- Equity financing (Entitlement Offer): US$100 million.

The vendor has also agreed to provide a warranty that EBITDA will total at least US$60 million per annum for two years post completion of the acquisition, with any EBITDA shortfall to be made up by a cash payment from the vendor.

The acquisition provides significantly enhanced scale and diversification, as well as meaningful and immediate earnings per share accretion:

- Combined Last Twelve Months ("LTM") revenue of ~A$214m (increase of 613%)

- Combined LTM EBITDA of ~A$92m (increase of 468%)

- Combined LTM NPAT of ~A$82m (increase of 609%)

Managing Director and Chief Executive Officer, Mr Joey Lim, commented:

"This acquisition is a compelling opportunity for Donaco shareholders. Star Vegas is a well-established and highly successful business, with an enviable market position, and excellent growth prospects. Shareholders will receive substantial benefits from the increase in size and scale of the Company, and the diversification of our revenue streams.

"Donaco will soon have two market-leading casino properties in two rapidly growing markets in Southeast Asia. We have always said that Donaco is not intended to be a single property company. This transformational acquisition is the culmination of many months of work, and is a major step forward in our expansion strategy."

EQUITY FUNDING

The acquisition will be funded from a variety of sources as outlined above and includes an equity financing in the form of an Entitlement Offer.

The equity component totalling approximately A$132 million (equivalent to ~US$100m or the Equity Financing component of the Star Vegas consideration) will be funded via a fully underwritten pro rata accelerated non-renounceable entitlement offer to raise $132 million ("Entitlement Offer"). Key terms of the entitlement offer include:

- Ratio: eligible shareholders will be invited to subscribe for 10 New Shares for every 21 existing Donaco shares ("Entitlement") held at the Record Date

- Record Date: 7pm (Sydney time) on Wednesday, 4 February 2015

- Amount: ~$132 million

The offer price per share of $0.60 ("Offer Price") is a 19.4% discount to the 30-day Volume Weighted Average Price on the ASX of A$0.74 per share, and a 10.1% premium to the closing price of Donaco shares on 22 January 2015 (the last trading day before the announcement of the Entitlement Offer). The Offer Price is a 6.6% premium to the Theoretical Ex Rights Price ("TERP") of $0.56.

The Entitlement Offer is fully underwritten by Canaccord Genuity (Australia) Limited. As the Entitlement Offer will be non-renounceable, Entitlements will not be tradeable.

To view details of the entitlement offer, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-DNA-840211.pdf


About Donaco International Ltd

Donaco International Limited (ASX:DNA)Donaco International Limited (ASX:DNA) operates leisure, entertainment and associated technology businesses across the Asia Pacific region.

Donaco's largest business is the Star Vegas Resort & Club, a successful casino and hotel complex in Poipet, Cambodia, on the border with Thailand. Star Vegas was established in 1999, and is the largest and highest quality of the Poipet casino hotels. The property has more than 100 gaming tables, more than 1400 slot machines, and 385 hotel rooms.

Donaco's flagship business is the Aristo International Hotel, a successful boutique casino in northern Vietnam, located on the border with Yunnan Province, China. Established in 2002, the property has recently been expanded to a brand new five star resort complex with 400 hotel rooms. Donaco is a pioneer casino operator in Vietnam, and owns a 95% interest in the business, in a joint venture with the Government of Vietnam.

https://www.facebook.com/AristoInternationalHotelOffical https://www.linkedin.com/company/donaco-international-ltd abnnewswire.com 


Contact

Donaco International Limited
Ben Reichel, Executive Director
T: +61-412-060-281
F: +61-2-9017-7001
WWW: www.donacointernational.com



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