Donaco International confirmed that it has completed the acquisition of the Star Vegas Club and Resort in Poipet, Cambodia.
“The Company now has ownership and control of the Star Vegas business,” The Australian company announced.
The company said it has signed binding agreements for the $20 million working capital facility, and agreed to issue warrants over a total of $7 million worth of shares in the company to the lender under the working capital facility.
“The warrants are effectively options to subscribe for new shares in the Company.”
“If the warrants are exercised in full, the warrant holder will be required to contribute USD7m in cash to the Company.”
Ben Reichel, executive director of Donaco International, said Star Vegas is perfoming well and expects the casino to sharply increase revenues for the company.
“We are very pleased to have successfully completed this deal. The Star Vegas business is robust, and is performing strongly. The handover process has been very smooth and seamless so far. We’re excited to be entering this new era for Donaco, with Star Vegas set to increase our revenues by around 500%.”