Regulatory Delays Force Iris Cairns to Extend Reef Casino Trust Takeover Offer

Funding Secured Amid Takeover Bid

Iris Cairns Property Pty Ltd, acting as trustee for the Iris Cairns Property Trust, has provided a significant update on its ongoing off-market takeover bid for all units in Reef Casino Trust (RCT). The second supplementary bidder’s statement, lodged on 6 February 2026, confirms that Iris has entered into a syndicated facility agreement with a global investment manager to finance the offer.

This agreement, signed on 4 February 2026, establishes two debt facilities under which funds will be borrowed by Iris Capital Holdings Pty Ltd and on-lent to the bidder. The facility exceeds the total amount required to fund the offer, which stands at $3.87 per unit, providing Iris with the financial firepower to complete the acquisition if successful.

Regulatory Delays Prompt Offer Extension

In addition to the funding update, Iris Cairns reconfirmed its intention to extend the offer period beyond the original closing date of 31 May 2026. This extension is designed to accommodate the ongoing suitability investigations by the Queensland Office of Liquor and Gaming Regulation (OLGR), a key regulatory hurdle for the transaction.

The timing of these investigations remains uncertain, and Iris has committed to providing further updates once the length of the extension is determined. This move reflects the bidder’s pragmatic approach to navigating regulatory complexities while maintaining momentum in the takeover process.

Unitholder Confidence and Withdrawal Rights

Importantly, the bidder notes that major unitholders have reconfirmed their stance not to exercise withdrawal rights that may arise if the offer period is extended due to regulatory delays or minimum acceptance conditions. This reassurance comes with caveats, including the absence of any superior proposal and continued positive assessments from the independent expert regarding the fairness and reasonableness of the offer.

This alignment among major stakeholders strengthens the position of Iris Cairns as it seeks to consolidate control over Reef Casino Trust, signalling confidence in the bid’s prospects despite the regulatory uncertainties.

Outlook and Market Implications

With funding firmly in place and a clear strategy to manage regulatory timing, Iris Cairns appears well-positioned to advance its takeover bid. The involvement of a global investment manager with a substantial asset base adds credibility to the financial arrangements underpinning the offer.

However, the final outcome will hinge on regulatory approvals and unitholder acceptance levels. Market participants will be watching closely for any shifts in these dynamics, as well as potential competing bids or changes in the independent expert’s opinion.