The sale of the Casino Canberra’s operation has taken another plot twist as it came to nothing after the parties did not manage to get the competent gambling watchdog’s approval.
As Casino Guardian reported, Blue Whale Entertainment Pty Ltd announced the AU$32-million acquisition of the casino in December 2018. Under the deal, it became the largest shareholder in Aquis Canberra Housing. However, in order to be finalised, the deal had to get approvals from the ACT gaming regulator. Following extensive discussions between the ACT Gambling and Racing Commission and the parties, the deadline for the watchdog’s approval, which had to be given by December 21st, 2019, passed without a result. The other conditions regarding the sale had been satisfied.
As revealed by Aquis and Aquis Canberra Holdings, the company had made an attempt to agree on an extension of the deal with Blue Whale. However, the deal has been cancelled, with Aquis seeking an AU$280,000 break fee.
A spokesperson for the ACT Government revealed that the ACT Gambling and Racing Commission had been proactive to assess the deal involving Casino Canberra and Blue Whale. The spokesman, however, noted, that Blue Whale had failed to provide the necessary information. As a result, the subsequent decision on the proposed agreement has not been possible.
Casino Canberra’s Business Remains Viable, Spokesperson Says
On its turn, Aquis has informed the Australian Stock Exchange that the board would provide an update for the group’s future strategy that would be aimed at guaranteeing continuous improvement and growth in the business. The statement said that new business opportunities that may arise would also be considered.
The company informed the Australian Stock Exchange that Casino Canberra’s business remains viable, cash positive and the operator’s board was optimistic that it would find further improvements in the future. No commentary on the matter was made by Allison Gallaugher, director of Casino Canberra, who also has not revealed whether Aquis was still open to other suitors. No further information about the effect that is expected to be brought to the casino by the deal’s collapse and the planned developments was revealed.
As Casino Guardian has previously reported, the 2018 agreement was reached prior to the ACT Government’s rejection of the AU$330-million unsolicited bid aimed at the casino precinct’s redevelopment. The negotiations, however, crashed because of the conditions imposed on the project, including the number of pokies Casino Canberra would be permitted to operate.
Back in 2014, the casino was acquired by Tony Fung’s Aquis from Casinos Austria at the price of AU$6.5 million. In December 2018, they revealed that the Hong Kong billionaire was willing to sell his majority stake (a little under 90% of Aquis’ shares) to Blue Whale but the sale was now unsuccessful.
- Author
Olivia Cole
