Star caters to Thai players
Donaco International Ltd. of Australia, which announced plans last month to raise US $100 million to buy a casino in Poipet, Cambodia, has already raised almost two-thirds that amount, according to multiple media reports.
On January 30, Donaco released a filing that detailed the plan, reported GGRAsia. Last week the company announced that it has raised AUD92.4 million (US $71.8 million) by placing shares with institutions through what is known as an entitlement offer.
According to Casino News Daily, the company informed the Australian Securities Exchange that it had placed more than 154 million shares, with an additional 154 million now set to be traded.
Donaco says it will pay US $360 million to buy the Star Vegas Resort & Club in a deal expected to close in April. The company currently owns just one casino, the boutique Aristo International Hotel & Casino in northern Vietnam near the Chinese border. Last year that property?which is 95 percent owned by Donaco, and 5 percent owned by the Vietnamese government?was expanded to include a five-star, 428-room hotel.
The Star Vegas is on the Thai border and caters mainly to Thai nationals, according to Asia Gambling Brief. “Star Vegas is a well-established and highly successful business with an enviable market position and excellent growth prospects,” said Donaco Managing Director Joey Lim. “Shareholders will receive significant benefits from an increase in size and scale of the company and diversification of our revenue stream.”
The casino attracts about 5,000 visitors a day and has 109 tables, mainly baccarat. Donaco told investors that Star, which opened in 1999, is expected to have generated $60.5 million in EBITDA in 2014.
