In the latest update, the acquisition of Donaco by Nut Road in New South Wales has been officially approved.
On Nut Road Completes Acquisition of Donaco International
In a significant move for the Asia Pacific leisure industry, On Nut Road Limited has successfully completed the acquisition of Donaco International. Here's a breakdown of the key details:
Background
- On Nut Road Limited, a Hong Kong-based special purpose vehicle, announced its intention to acquire Donaco International Limited on March 17, 2025, offering AUD 0.045 cash per share to Donaco shareholders.
- The acquisition scheme received approval from the Supreme Court of New South Wales on August 8, 2025, legally finalizing the transaction.
Acquisition Details
- Prior to the deal, On Nut Road Limited did not own 100% of Donaco International. The acquisition was for the remaining shares not already held by On Nut Road.
- The total value of the takeover was AUD 35.2 million (approximately $22 million USD), with each share valued at AUD 0.045.
Timeline
- The court approval was granted on August 8, 2025.
- Following the court approval, trading of Donaco's shares was suspended on the Australian Securities Exchange (ASX) from August 8, 2025.
- The scheme record date was set for August 12, 2025, at 5:00 PM AEST, determining which shareholders would receive the AUD 0.045 per share payment.
- The scheme was implemented on August 19, 2025, with payments to shareholders expected on this date.
- Donaco International was officially removed from the ASX on August 20, 2025, following the completion of the takeover.
The acquisition received approval from 98.11% of Donaco's shareholders, demonstrating strong confidence in the business's long-term success. The Supreme Court's orders will be lodged with the Australian Securities and Investments Commission (ASIC) on August 8.
Donaco's board has provided absolute backing for the transaction, citing regional and tax uncertainty in Cambodia, as well as Thai border restrictions as reasons for their support. On Nut Road already owned a 12.84% stake in Donaco International before the acquisition.
The transaction is expected to wrap up by August 19, with Donaco's shares being removed from trading and the compensation being paid to eligible shareholders on that day. Eligible shareholders will be paid compensation per the deal on August 19.
The acquisition agreement was initially proposed earlier this year by On Nut Road. The acquisition values Donaco International shares at approximately AUD 0.029 each. On Nut Road Limited is a Hong Kong-based special purpose vehicle backed by Argyle.
Donaco has promised to provide a timely update if the schedule is to change.
The acquisition of Donaco International, a significant move in the Asia Pacific leisure industry, marks a strategic business move for On Nut Road Limited, particularly in the finance sector. With the completion of the transaction, On Nut Road, previously a partial owner, now gains full control over Donaco International's operations, potentially influencing the future of both companies in the business world.
