Shareholders of Donaco International have unanimously voted to sell the struggling Southeast Asian casino operator to Hong Kong investment firm On Nut Road (ONR). The decision will mark the end of the company’s difficult history on the Australian Securities Exchange (ASX).
The cash offer of AU$0.045 per share – 50% above Donaco’s pre-deal share price – won the backing of 98.11% of investors at a meeting on 1 August. The Supreme Court of New South Wales has already approved the scheme, paving the way for ONR, a subsidiary of Hong Kong fund Argyle Street Management, together with other interested parties, to take control of the company.
ONR, an investor in Donaco since 2019 and holder of 12.84% of its shares, is backed by a Hong Kong-licensed fund managing over AU$3.07 billion (US$2 billion) in assets. Argyle Street is known for its opportunistic investments in distressed Asian assets.
Donaco Chairman Pornthat Amatavivadhana said the decision was driven by “a combination of financial difficulties, low profitability, and a lack of substantial investor confidence,” adding that “raising funds for any form of growth has been particularly challenging.”
The company’s flagship property – the DNA Star Vegas casino in Poipet, heavily reliant on Thai visitors – suffered a double blow: worsening political tensions between Cambodia and Thailand that led to the closure of key border crossings, and regulatory changes in Cambodia’s gaming industry.
In 2020, Cambodia introduced a new commercial gambling law aimed at attracting large-scale licensed integrated resorts and tightening oversight of smaller operators. While presented as a step toward international standards, the law increased compliance costs, imposed stricter licensing requirements, and granted authorities broader powers to shut down non-compliant venues. Smaller operators like Donaco faced higher operating expenses and greater regulatory scrutiny, exacerbating the impact of declining tourist numbers.
In June, Star Vegas visitor numbers fell 62% year-on-year. Group EBITDA dropped 57% in Q2, with Star Vegas revenue falling to AU$4.31 million.
The Aristo International Hotel in Vietnam posted a 4.7% revenue increase, but this was far from enough to offset the Cambodian decline.
Trading in Donaco shares was suspended on 8 August. Shareholders on the register as of 12 August will receive their payout on 19 August.
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