Casino Canberra’s owners have a lot to consider after a second bidder for their entertainment property has emerged. Hong Kong-based Aquis Entertainment Limited recently announced its plans to sell the casino for $52 million and has now requested a trading halt on the ASX.
The company has run Casino Canberra since 2015 – lodged a request for a trading halt with the Australian Securities Exchange on its shares until Monday, 4 July.
Aquis confirmed that it had received a competing bid, and a revised offer from Capital Leisure, saying both were at “materially higher prices to that agreed in the original agreement with Capital Leisure.”
The operator is now considering both proposals, with a decision announcement expected soon.
A Bumpy Road
Aquis had previously announced that it was in the process of selling the casino property to Capital Leisure-owned Oscars Group for $52 million. The Oscars sale was pending shareholder approval before the new bidder emerged.
The Oscars bid included a guarantee that no casino employees would lose their jobs. At the time, Aquis Entertainment chairman, Russell Shields, called the Oscars bid “compelling”, praising its long-term value for shareholders.
Regulatory processes have stalled previous sale attempts, including a 2018 $32 million offer by Blue Whale Entertainment. The deal fell through when the bidder could not furnish the requested information to the ACT Gambling and Racing Commission.
Aquis felt the sting of regulation again in 2018 when the ACT Government rejected its $330 million bid to redevelop the casino precinct. The government’s conditions for the deal proved to be the deal-breaker, as Aquis would not compromise on several points, including its desired number of poker machines.
Legislation limited the number of pokies the casino could operate at 200, but Aquis was pushing for a figure of 500. The fortunes of Aquis’ property fell on more hard times in 2021 when pandemic-related closures saw a 71% drop in revenue from the previous year.
