Australian-based Aquis Entertainment has announced that it has sold its subsidiary Aquis Canberra Pty. Ltd., which operates Casino Canberra, to Iris CC Holdings Pty. Ltd. for a total price of US$42.5 million.
Per the terms of the agreement, Iris will pay an upfront sum of $40.8 million, with an additional $1.7 million being held in escrow for a period of nine months, to be released in the event that there are no warranty claims.
Additionally, Aquis will now subsequently pay back $13.8 million to its own controlling shareholder, Aquis Canberra Holdings Pty. Ltd., for loans related to previous Casino Canberra investments. The company is also reportedly considering whether or not to remain listed on the Australian Securities Exchange (ASX).
Allison Gallaugher, CEO and board member for Aquis, will resign to become CEO of Casino Canberra under Iris’ ownership. Aquis announced that attorneys Tony Pickett and Simon Chan will fill her board duties for the time being.
In a statement, Gallaugher said that Aquis was “very pleased to have been able to negotiate and complete this transaction, which provides significant benefits to all stakeholders.”
“As a CEO and employee, I am very excited to lead the Casino Canberra under Iris ownership and we look forward to continuing to grow the strong results we have built over the past few years and for the opportunities available for us all with Iris moving forward,” she added.
Aquis had previously submitted a last-ditch proposal for a $226 million renovation and expansion of the property, which was denied by the state government.
Before the recent sale, the two sides had a longstanding back-and-forth regarding the property, largely revolving around local legislation that bars Casino Canberra from offering slot machines.
Aquis’ first redevelopment proposal was submitted back in 2015, which called for an allotment of 500 machines. That bid was rejected, and the government then countered with an offer of 200 machines, which the company declined.
