The Reef Hotel Casino in Cairns, Queensland, could soon have a new owner as hospitality group Iris Capital has formalised an acquisition offer valued at AU$177m (US$116m) as an off-market takeover bid.
The Directors of the Reef Casino Trust (RCT), which operates the casino, have endorsed the proposal, urging stakeholders to vote in favour.
Major shareholders of RCT include the hotels group Accor and Austrian casino operator Casinos Austria International, holding a combined 70% interest. Both entities have expressed their support for Iris Capital’s bid, contingent on the absence of a superior competing offer and pending an independent expert’s favourable opinion.
Iris Capital’s acquisition strategy involves a comprehensive evaluation and communication process. A detailed summary of the acquisition proposal is slated for distribution to shareholders by late September, according to RCT. This move is part of Iris Capital’s broader expansion strategy within the hospitality sector.
The agreement has led to RCT ceasing all negotiations with other parties regarding any competing offers, underscoring the commitment to Iris Capital’s bid. This decisive step aims to streamline the acquisition process and ensure that stakeholders are aligned with the proposed transaction.
The acquisition of The Reef Hotel Casino is significant within the Australian gaming and hospitality landscape, potentially enhancing Iris Capital’s portfolio and influence in the region. The deal not only reflects the confidence of major stakeholders in Iris Capital’s capabilities but also signifies a strategic shift in ownership that could impact the future operations and management of the casino.
