Delayed Acquisition Timeline Raises Questions on Donaco’s Takeover Certainty
Donaco International has updated the timeline for its acquisition by On Nut Road Limited, pushing key dates into August due to valuation and legal review delays. Shareholders await the next steps in this protracted takeover process.
- Scheme timetable delayed due to late valuation inputs and extended legal analysis
- Independent Expert’s report completion postponed, impacting ASIC review
- First court hearing rescheduled for 20 June 2025
- Scheme meeting now set for 4 August 2025
- Implementation of acquisition expected by 19 August 2025
Background to the Scheme
Donaco International Limited, a player in the gaming and leisure sector, is currently undergoing a significant ownership change. On Nut Road Limited, which already holds a stake in Donaco, is moving to acquire the remaining shares through a Scheme of Arrangement at A$0.045 per share. This transaction, if completed, would consolidate On Nut Road’s control over Donaco’s casino and resort operations across Southeast Asia.
Reasons Behind the Delay
Originally, the timetable for this acquisition was set to progress more swiftly. However, delays have emerged primarily due to the late submission of valuation inputs from third parties to the Independent Expert tasked with assessing the fairness of the deal. Additionally, the complexity of change of control provisions under Cambodian and Vietnamese law required more extensive analysis than anticipated. These factors, compounded by holiday periods in Australia, Vietnam, and Cambodia, have pushed back critical milestones.
Revised Timetable and Next Steps
The updated schedule now sees the first court hearing on 20 June 2025, followed by the dispatch of the Scheme booklet to shareholders by the end of June. The Scheme meeting, where shareholders will vote on the acquisition, is slated for early August, with the final court approval expected shortly thereafter. The Scheme’s effective date and record date fall in mid-August, with implementation targeted for 19 August 2025.
Implications for Shareholders and Market
While the delay may test investor patience, it also underscores the thoroughness of the regulatory and legal review processes involved in cross-border acquisitions. Shareholders will be keenly watching the Independent Expert’s report and the outcome of the court hearings. The unchanged offer price suggests no renegotiation has occurred, but the extended timeline could influence market sentiment and trading activity in the interim.
Looking Ahead
Donaco’s management and On Nut Road Limited remain committed to completing the transaction, but the timetable remains indicative and subject to further change. Stakeholders should prepare for ongoing updates as the process unfolds through the Australian Securities and Investments Commission’s review and court approvals.
Bottom Line?
With the acquisition timeline extended, all eyes turn to the upcoming court hearings and shareholder vote to determine Donaco’s future.
Questions in the middle?
- Will the Independent Expert’s report influence shareholder support for the Scheme?
- Could further legal or regulatory hurdles delay the acquisition beyond August?
- How might the extended timeline affect Donaco’s share price and investor confidence?
