Interesting times for one of our clients today... AQUIS PROJECT TAKES AN IMPORTANT STEP WITH PROPOSAL TO ACQUIRE REEF CASINO Aquis Great Barrier Reef Resort Group has today announced that it is in discussions with the responsible entity for the Reef Casino Trust (ASX: RCT) and its major investors in respect of a proposal to acquire the Reef Casino Trust and other associated entities for $276 million. The two largest investors in RCT, namely Casinos Austria and Accor, who collectively hold more than 70% of RCT’s securities, have indicated they would support the proposal if it proceeds in the absence of a superior proposal. The acquisition of RCT, if it proceeds, would be a significant boost to the Aquis development by providing increased certainty for the casino component of the Aquis integrated resort. The Aquis project continues to make rapid progress and on 1 November 2013 submitted a detailed Environmental Impact Statement (EIS) to the State Government. The EIS should be released for public review in the near future. The proposal for RCT reflects the desire of Aquis to ensure that its $4.2 billion integrated resort proposal at Yorkey’s Knob will provide benefits for the whole community, including the staff and owners of the existing casino in Cairns. Aquis Chief Executive Officer Justin Fung said the acquisition would make it possible for Aquis to deliver benefits to Cairns quickly instead of waiting five years for the approval and construction of a new resort. “We don’t think Cairns should have to wait five years to experience the economic and financial benefits of the inbound tourism that we can generate,” Mr Fung said. “If we are successful in acquiring the Reef Hotel Casino we can start working immediately to attract visitors to Cairns, developing its market profile with international casino visitors and begin developing our business, instead of starting from scratch in 2018.” Mr Fung said the commercial viability of the Aquis resort was predicated on the inclusion of an international casino as part of a multi-faceted offering which included six star hotels, retail, entertainment and community facilities. Under the terms of the indicative and non-binding proposal, Aquis would pay $216.86 million, or $4.354 per unit, for the Reef Casino Trust, $36.25 million for the operator Casinos Austria (International) Cairns, and $12.6 million for Reef Corporate Services which is the responsible entity of the Reef Casino Trust. The proposal is subject to certain conditions, including the completion of satisfactory due diligence, obtaining satisfactory regulatory approvals and acquisition of 100% of each of the relevant entities. Aquis has commenced its due diligence enquiries. Mr Fung said a key benefit of the acquisition for Aquis would be its delivery of a skilled hotel and casino management team, with employees who already knew what they were doing. “The acquisition will give us a nucleus of staff to work with and an opportunity for the existing staff at Reef to be part of a rejuvenation plan of the existing casino, representing a huge opportunity for them as well,” Mr Fung said. “We intend to use the Reef Casino as a training ground for the Aquis Great Barrier Reef Resort for the next five years.” Once the Aquis project is fully developed, the Reef Casino will be integrated into the development as a “CBD campus” and linked casino venue. Mr Fung said that having an immediate and operating business in the area would give Aquis the confidence to keep spending and to integrate into the community immediately as an active member with sponsorships and joint ventures with local community groups and businesses. In addition, the proposal, if it proceeds, would provide investors in the Reef Casino Trust with a very attractive return on their investment, with the proposed price representing a 53.3% premium on the closing price ($2.84) on November 12 and 64.8% premium to the three-month VWAP of $2.64. ENDS: Media enquiries to Ben Ready on 0415 743 838.
Posted on: Wed, 13 Nov 2013 08:09:18 +0000
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