Reef Casino Trust, the entity that manages the Reef Hotel Casino in Cairns, Australia, has received a second takeover proposal, with Morris Group lodging a cash bid.
The off-market bid, which covers all issued units in Reef Casino Trust, is valued at AU$184 million ($120 million). Shareholders would receive AU$3.70 for each share they hold in the trust.
Morris Group’s bid, lodged by its MGGM Cairns No1 Property Trust entity, also covers the acquisition of Casinos Austria International. This, however, would be processed by another business within the Morris Group.
Reef Casino Trust has ordered its financial and legal advisers to analyze the offer before it makes further comment.
Reef Casino Trust Maintains Support for Iris Capital Bid
The bid came just two weeks after Iris Capital submitted its own offer for Reef Casino Trust.
Lodged through the Iris Cairns Property Trust, the offer is valued at AU$3.5541 per share in Reef Casino Trust. This equated to a total bid value of AU$177 million, slightly short of the Morris Group proposal.
In line with a takeover bid implementation agreement signed in mid-July, Iris Capital has been informed of the new offer. The trust said shareholders are advised to take no action at this point.
In addition, the trust clarified that its position of recommendation for the Iris Capital offer remains unchanged.
“We will continue to keep the market informed of any material developments in respect of the alternative proposal in accordance with its continuous disclosure obligations,” it said.
