Donaco, an Asian casino operator has obtained a US$100 million loan from a major bank in Taiwan. The loan is for the acquisition of the Star Vegas International Resort and Casino in Cambodia and the consideration price stands at US$360 million.
In February, Donaco had stated that an aggregate of US$92.1 million had been raised from share entitlement offers and this money would be used as equity in the casino deal.
This newly announced $100 million loan is with Mega International Commercial Bank Co Ltd. This lender is known to have a presence in Cambodia. After discussions with Mega International, Donaco will have the ability to issue company shares, which was promised as part of the deal consideration. These shares will be issued directly to the casino’s vendor. However, this is subject to the approval of shareholders at the general meeting to be held on March 27.
Donaco had previously planned to issue the shares through Donaco’s wholly owned subsidiary located in Hong Kong, where the shares would have been held on trust for the vendor until the deal was completed.
The final sale of the Star Vegas Resort and Club will be completed in April, based on the filing on January 30 by Donaco. Donaco owns and runs the Aristo International Casino Hotel, located in northern Vietnam in Lao Cai.
Brothers Joey Lim Keong Yew (Managing Director and Chief Executive Officer) and Benjamin Lim Keong Hoe (Non-Executive Director) of Donaco are major shareholders in Genting Development Sdn Bhd. They are the grandsons of the late Lim Goh Tong, who transformed Genting Highlands from an unexplored hilltop into one of the world’s most successful casino resorts with Resorts World Genting.