Australia-listed Donaco International has been informed that the family of its managing director, Joey Lim has sold a total of 37.5 million shares in the company for an aggregate consideration of A$15 million (US$11.9 million).
In a filing to the ASX on Monday, Donaco said the placement to international and domestic institutions was for private and family reasons.
Mr Lim stated “I firmly believe that Donaco’s shares are undervalued at current prices, but due to the timing of these circumstances, there was no alternative but to sell shares at this time. I continue to have a very positive view on the prospects for the Company, and my family and I continue to own more than 230 million shares, representing more than 27 percent of the stock.
“There was a strong demand for the shares from both international and domestic institutions. I believe that the increased liquidity in the company’s stock will be beneficial for investors and for the company,” said Lim, adding that no further sales by the family are foreseeable at this time.
On Monday, the company also made some further updates on its Star Vegas property, noting that Donaco now has filled the key management roles at the casino with new personnel.
Donaco also noted that it has issued a cease and desist letter to the adjacent Star Paradise property for continuing to operate a VIP room in breach of non-compete provisions.
Donaco had been managing the game room at Star Paradise under a management contract signed in August 2016, which has now expired.
Under the agreement, the Star Paradise gaming room cannot operate without Donaco’s consent.
Donaco says it will not hesitate to commence legal proceedings to enforce its rights under the non-compete provisions should this become necessary.