Australia-based Aquis Leisure has formally introduced that it has finalized the sale of its complete subsidiary, Canberra-based Aquis Canberra Pty Ltd, higher referred to as the On line casino Canberra web site, to Iris CC Holdings Pty Ltd for an irrevocable sale worth of AU$63 million, which is roughly US$42.5 million.
New buy:
Beneath the phrases of the sale settlement, Aquis obtained a completion fee from Iris of AU$60.5 million, which is roughly US$40.8 million.
Nonetheless, an extra fee of AU$2.5 million, which is roughly US$1.7 million, is held in escrow for the time being and might be launched to Aquis in 9 months. This occurred as a result of there was no guarantee declare.
As well as, Aquis will repay the total AU$20.4 million mortgage to its majority shareholder, Aquis Canberra Holdings (Aus) Pty Ltd. The debt was incurred through the Aquis On line casino Canberra funding.
All through the official announcement of the sale, Aquis officers stated: “The corporate will now take into account the way to make the most of the remaining funds from the sale and whether or not to stay as a listed entity on the ASX.”
“We’d additionally prefer to announce the resignation of Allison Gallaugher as a director and CEO of Aquis, and the appointment of attorneys Simon Chan and Tony Pickett as new non-executive administrators. Gallaugher will as an alternative proceed as CEO of On line casino Canberra underneath the brand new possession of Iris Capital.”
On this regard, Gallaugher stated: “As a Board, we’re very happy to have been in a position to negotiate and full this transaction, which offers important advantages to all stakeholders.
“We thank Tony Fung for his assist since buying On line casino Canberra, with out which we might not have been in a position to obtain the expansion within the enterprise which has enabled Aquis to ship the rise in worth for all shareholders culminating within the transaction with Iris.
“As a CEO and worker, I’m very excited to guide the On line casino Canberra underneath Iris possession and we sit up for persevering with to develop the sturdy outcomes we’ve got constructed over the previous few years and for the alternatives accessible for us all with Iris shifting ahead.”
Refusal of property renovation proposal:
The sale of On line casino Canberra follows the failure of Aquis to enter into an settlement with the ACT authorities relating to a proposed AU$330 million, which is roughly US$226 million, renovation of the property.
Aquis, which accomplished its buy of On line casino Canberra in 2014, submitted its self-designed renovation plans in 2015, which included an software for permission to put in as much as 500 slot machines, as On line casino Canberra isn’t allowed to have slot machines underneath current laws.
As well as, Aquis’ first bid was rejected in December 2018, with the federal government stating that the proposal is “untenable resulting from ongoing uncertainty surrounding regulation and financing particulars.”
Moreover, the ACT Authorities submitted a counter provide by which Aquis can be licensed to run 200 slot machines and 60 EGMs underneath sure strict circumstances, however it rejected the lowered provide.
