Lim: Shares are “undervalued”
Australia-listed casino firm Donaco International Ltd. has disclosed that family members of Managing Director Joey Lim have sold a total of 37.5 million shares in the company for an aggregate AUD15 million (US$11.9 million). Joey Lim is the grandson of Genting founder Tan Sri Lim Goh Tong.
In the filing, Lim stated, “I firmly believe that Donaco’s shares are undervalued at current prices, but due to the timing of these circumstances, there was no alternative but to sell shares at this time. I continue to have a very positive view on the prospects for the company, and my family and I continue to own more than 230 million shares, representing more than 27 percent of the stock. No further sales by the family are foreseeable at this time.”
According to GGRAsia, Donaco has taken “Southeast Asia’s patchwork approach to casino legalization,” operating a Vietnam casino that mostly serves Chinese players, and a Cambodian casino that caters to players from Thailand. In both Vietnam and Cambodia, locals are now barred from casino gambling; that will change in Vietnam, where three casinos will take part in a three-year test of locals gaming starting in 2019.
In related news, Donaco has issued a cease-and-desist order to a Thai business partner it says is still operating the Star Paradise in Poipet, Cambodia after a deal for Donaco to run that property expired.
“Currently the gaming room at Star Paradise continues to operate,” the filing said. “Donaco will not hesitate to commence legal proceedings to enforce its rights under the non-compete provisions, should this become necessary.”
The company also noted that VIP earnings from Star Vegas “are expected to be lower in the September quarter,” but added that the segment “has been rebuilding during this period as the new junkets are introduced.” A number of Thai junkets launched operations there in August, and “a number of additional junkets” joined in early September.
