Casino Canberra in Australia, which was to have been acquired last month by Blue Whale Entertainment Pty Ltd., will not be sold after all.
The deal fell through when the buyer, a company owned by Michael Gu of the iProsperity Group, did not provide complete documentation for the review of ACT regulators.
The $32 million deal made Blue Whale the major shareholder in Hong Kong-based Aquis Entertainment’s Aquis Canberra Holdings (ACH). The sale was subject to regulatory approval, and the parties had been negotiating with the ACT Gambling and Racing Commission. But a deadline of December 21 came and went with no agreement. All other conditions had been satisfied, reported Inside Asian Gaming.
Aquis and Aquis Canberra Holdings (ACH) reportedly tried to negotiate an extension with Blue Whale, but have since called off the deal and sought a $280,000 break fee.
“The proposed agreement and the subsequent decision not to proceed by the parties were commercial decisions, independent of government and the commission,” an ACT government spokesperson said.
Aquis told the Australian Stock Exchange that the board would update the group’s strategies to ensure continual improvement and growth in the business, including consideration of any new business opportunities which may arise. “Aquis is proud of the improvements made to the business since taking control of the group and intends to continue on this path,” the statement said. ”The business is viable, cash positive and the board looks forward to seeing further improvements in the future.”
The 2018 deal came after the government denied Aquis’ $330 million bid to redevelop the casino precinct. Negotiations broke down over the conditions imposed on the project, including the number of poker machines the company would be allowed to operate.
Blue Whale is associated with the investment manager of the SB&G Hotel Group (Australia) Fund, the owner of the Crowne Plaza Hotel, located adjacent to Casino Canberra on Glebe Park, and the $50 million Holiday Inn Express development proposed for the same site.
The new owner had said that it planned to upgrade the facility, including adding new world-class restaurants, as part of its vision to reinforce the casino as the entertainment hub of the nation’s capital and attract more visitors, including high rollers, according to news reports.
In 2019, Aquis reported a loss for the casino of $2.5 million for the six months to June 30. The half-year loss was up 18.4 percent on the same period last year from $2.1 million, with revenue falling 2.7 per cent from $12.3 million to just under $12 million.
