Pending approval by ACT and shareholders
Aquis Entertainment Ltd., operator of Casino Canberra in the Australian Capital Territory, is about to be acquired up Michael Gu’s Blue Whale Entertainment Pty Ltd. in a deal valued at AU$32 million (US$22.6 million). Pending approval by shareholders and the ACT gaming minister, the transaction could be finalized by the second quarter of 2019.
The sale took place after Casino Canberra’s expansive redevelopment plans were rejected by the ACT government; lawmakers refused to sign off on the AU$256 million upgrade plan, which would have added 500 slot machines.
Gu is CEO of iProsperity, a private equity firm representing Asian high-net worth investors. AGB said the company has a reputation for high-profile hotel acquisitions. Gu will buy 137 million Aquis shares from Aquis Canberra Holdings for AU$4 million (US$2.82 million).
When the new deal closes, Blue Whale will replace ACH as the controlling shareholder of the company at 87 percent, reported Asia Gaming Brief. Blue Whale will also have the right to the Aquis trademark and brand for up to 12 months.
Aquis CEO Jessica Mellor, who is set to leave the company in February, said the agreement “provides considerable value” to the company and its minority shareholders, in that “it recognizes the significantly improved operating performance of the business and has the effect of removing the existing convertible loan with relatively minimal dilution to minority holders.”
Gu said the acquisition is a good one for iProsperity. “With our wealth of experience in hotels, we believe this presents the business with a unique opportunity to release this largely untapped market and provide Canberra with more world-class experiences,” he said.
The new owner also has plans to improve the property with new restaurants and other amenities.
