Donaco International (ASX:DNA) Agrees to $55.6M Takeover by Major Shareholder On Nut Road

3 min read | March 17, 2025 02:43 PM AEDT | By Team Kalkine Media

Donaco International (ASX:DNA) Agrees to $55.6M Takeover by Major Shareholder On Nut Road — Image source: Shutterstock

A Strategic Move for Stability

Donaco's non-executive chair, Porntat Amatavivadhana, emphasized that the takeover provides shareholders with certainty in a volatile industry. The entertainment and gaming sector has faced numerous financial hurdles, with limited profit margins and fluctuating investor sentiment.

While Donaco has made strides in stabilizing operations post-pandemic, financial constraints have continued to impact expansion efforts. Amatavivadhana highlighted that having a strong financial backer like On Nut Road is critical in overcoming these challenges.

Industry Challenges and Growing Competition

Donaco faces multiple operational hurdles, particularly in its core markets. The Thai government’s proposal to introduce casino franchises in Bangkok poses a direct threat to its border-based casinos, potentially affecting patron traffic.

Additionally, power supply disruptions between Thailand and Cambodia have added to operational difficulties, impacting costs and logistical efficiency. These factors have contributed to the company's decision to move forward with a more stable financial structure under On Nut Road.

Key Assets and Business Presence

Donaco operates two major gaming properties:

Star Vegas Casino & Hotel in Poipet, Cambodia – the company’s flagship property with 385 hotel rooms, over 150 gaming tables, and 1,000 slot machines.
Aristo International Hotel & Casino in northern Vietnam – a high-end boutique gaming resort near the Chinese border, featuring 400 rooms and a range of gaming facilities.

On Nut Road’s Role in the Acquisition

On Nut Road, a Hong Kong-based fund managed by Argyle Street Management, has been a stakeholder in Donaco since 2019. The firm currently holds 12.84% of Donaco’s issued capital and is managed by Thai billionaire Chanin Donavanik.

With over $2 billion in assets under management, On Nut Road has positioned itself as a key player in the financial and hospitality sector, making this acquisition a strategic step in its broader investment portfolio.

As the takeover progresses, Donaco shareholders will await further updates regarding regulatory approvals and final voting outcomes.

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