Australian-listed Donaco International Ltd, a prominent operator of border casinos in Cambodia and Vietnam, has reported a delay in its full acquisition deal with On Nut Road Limited, a special purpose vehicle managed by Hong Kong-based Argyle Street Management Ltd.
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Founded in 2002, Donaco owns and operates two flagship gaming properties: Star Vegas Resort & Club in Poipet, Cambodia, and Aristo International Hotel in northern Vietnam. Known for serving cross-border customers, Donaco has been a significant player in the Southeast Asian casino landscape.
The proposed acquisition—valued at AU$55.59 million (US$35.2 million) and offering AU$0.045 per share—represents a 50% premium over Donaco’s stock price as of March 14, 2025. While Donaco’s Board of Directors unanimously supports the offer, and major shareholders Lee Bug Huy and Lee Bug Tong (who collectively hold 42.17%) are in favor, the deal now faces regulatory delays.
According to company disclosures, the postponement is due to extended valuation and legal reviews required under Cambodian and Vietnamese regulations for changes in corporate control. Additionally, a new 10% VAT on gross gaming revenue, introduced in Cambodia on January 1, 2025, could add more than AU$666,000 to Donaco’s operating expenses. These complications, coupled with recent stock volatility, have created uncertainty around the deal’s timeline. Despite these hurdles, Donaco insists it remains committed to delivering long-term value for shareholders and exploring strategic growth within regulated markets.
The outcome of this acquisition could shape regional investment sentiment toward gaming assets in Southeast Asia.
