In the news: The acquirement of Donaco by Nut Road, a deal given the green light in New South Wales.
On Nut Road Acquires Donaco International: A Game-Changer for the Asia Pacific Leisure Giant
After receiving final approval from the Supreme Court of New South Wales, On Nut Road Limited's acquisition of Donaco International is set to be completed by August 19. The deal, which values Donaco at roughly $0.029 per share, has been warmly welcomed by both parties.
On Nut Road, a Hong Kong-based special purpose vehicle backed by Argyle, has shown strong confidence in Donaco International's long-term success with this acquisition. The agreement, made earlier this year, is expected to result in Donaco becoming a wholly owned subsidiary of On Nut Road.
The acquisition has been overwhelmingly supported by Donaco's shareholders, with 98.11% voting in favour of the deal. The scheme for On Nut Road to acquire the remaining Donaco shares becomes effective on August 8, and the shares will be suspended from trading on the ASX as of this date.
The board of Donaco has given absolute backing to the transaction, citing financial stability, clearer direction, and the possibility of simplifying the company's structure as key reasons for their support. Regional and tax uncertainty in Cambodia, as well as Thai border restrictions, are among the factors that have contributed to this decision.
Eligible shareholders will receive A$0.045 cash per share as compensation, which represents a 50% premium over the share price before the deal announcement and is about 9.8% higher than the price on 18 June 2025, just before the scheme document release.
Analysts expect the acquisition to bring new funding and strengthen management, enhancing Donaco's ability to adapt amid a shifting Southeast Asian gaming market. This significant change in the ownership structure of the company is expected to mark a new chapter in Donaco's journey.
Donaco International is expected to be removed from the ASX on August 8, signalling the start of a new era for the Asia Pacific leisure giant.
[1] Donaco International Limited - Announcement of Court Approval of Scheme of Arrangement. (2025, August 10). Retrieved from https://www.asx.com.au/asxpdf/20250810/pdf/44g6k3v320268.pdf
[2] Donaco International Limited - Announcement of Compensation Payment Date for Scheme of Arrangement. (2025, August 10). Retrieved from https://www.asx.com.au/asxpdf/20250810/pdf/44g6k3v342551.pdf
- The acquisition of Donaco International by On Nut Road, a Hong Kong-based special purpose vehicle with backing from Argyle, is expected to bring fresh funds and strengthen management within the company, thus enhancing its resilience against the shifting Southeast Asian gaming industry.
- With this acquisition, On Nut Road, active in both the business and finance sectors, aims to transform Donaco International into a wholly owned subsidiary, providing the Asia Pacific leisure giant with financial stability and a clearer direction for its future.
