Aquis Entertainment has announced a new agreement to sell its Casino Canberra to Sam Arnaout’s Iris Capital after receiving a greater bid than previously proposed by rival pub group Oscars Hotels.
News emerged mid-May that Oscars had formed an agreement from Aquis to purchase Casino Canberra for $52 million.
Under pressure from other interested parties, Oscars last week increased its bid to $58 million.
But this week Aquis told its investors it had entered a new agreement with Iris, for a further revised price of $63 million.
Furthermore, Aquis agreed to pay a break fee of $1 million if it decides on an even higher offer, while Arnaout also gets right of reply.
“In connection with the price increase, Iris sought, and Aquis agreed, that if Aquis receives any further superior proposals to acquire Aquis Canberra, Iris have the opportunity to match any such superior proposal before Aquis can terminate the share purchase agreement with Iris for a superior proposal,” said a company statement.
Arnaout made the expansion into casinos last year, buying Lasseters in Alice Springs for $105 million, in April.
He has since backed that move up with news of a massive $75 million redevelopment of the property, and then complementary purchases of three more pubs and two hotels in Alice.
Oscars has been pursuing lateral expansion in large-format accommodation hotels, seen in the Gravanis brothers’ securing Caves Beach Tavern near Newcastle in April for $35 million, bolstering the portfolio with 39 seaside accommodation cabins.
Casino Canberra is the largest asset of ASX-listed Aquis Entertainment, controlled by Hong Kong billionaire mogul Tony Fung, who holds nearly 90 per cent of its stock.
Fung bought Casino Canberra in 2014 for $6.5 million, from Casinos Australia, and has invested significant capex into the business and property.
The listed Aquis has been looking to sell the property for several years. In 2018 its proposed $330 million redevelopment of the site was rejected, and a deal with iProsperity, valuing the asset at $32 million, fell over just months before iProsperity collapsed.
Aquis chief executive Allison Gallaugher believes the latest activity and interest recognises the casino’s “continued strong operating performance and potential” and acknowledges the deal as a considerable value uplift to the company and its shareholders.
The Aquis board is said to be considering its future post-sale, including new opportunities. An update to shareholders is anticipated this month.
The sale to Iris remains conditional, subject to shareholder and regulator approval.
