The Reef Hotel Casino in Queensland, Australia has confirmed media reports that it is in talks with several parties over a possible takeover of the venue.
According to The Australian, the Reef Hotel Casino is speaking with both the Iris Hotel Group and Morris Group. The casino has released a statement to confirm discussions with the two parties.
Iris is a fully integrated development and hospitality group, while Morris Group is owned by billionaire Chris Morris.
Reef Corporate Services (RCSL), which is responsible for the Reef Casino Trust (RCT), said the talks relate to a full takeover over the property in north-west Queensland. However, it said discussions are “incomplete” and remain ongoing.
The statement also made clear there is no certainty a deal will be agreed, while no party is obliged to proceed. It added that any acquisition would be subject to certain conditions, including regulatory approvals.
Reef Hotel Casino Proposals Exceed AUS$200 million
RCSL also referred to the reported figure as to how much the deal could be worth. The Australian said the successful buyer would pay over $AUS200 million (US$128 million) to acquire the venue.
In its statement, RCSL confirmed this, saying both proposals are in excess of $200 million for all components. This covers all units of the RCT, as well as all issued share capital of both Casinos Austria International Cairns (CAIC), which operates the casino, and RCSL itself.
However, while price and value allocation remain under negotiation, RCSL said the value allocated to units in RCT is less than $200 million.
“While discussions are ongoing, investors are cautioned not to rely on any speculation regarding the negotiations, including any price or transaction terms that may be achieved or the allocation of total value between the units in RCT, the shares in CAIC and the shares in RCSL,” the statement said.
“RCT will continue to keep the market informed in accordance with its continuous disclosure obligations.”
Located in Cairns, the Reef Hotel Casino opened in January 1997. It features a large casino, hotel, on-site dining options and event and conference facilities.
