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Highlights
- Donaco delays scheme timeline due to legal and valuation reviews
- Cambodian tax clarification reveals potential Q3 VAT exposure
- Updated Scheme timetable to be provided post court and expert review
Donaco International Limited (ASX:DNA), an operator of leisure and casino businesses in Southeast Asia, has announced a revised timeline for its proposed Scheme of Arrangement with On Nut Road Limited (ONR), citing legal complexities and holiday-related delays.
Originally slated for May 2025 dispatch and a June 2025 shareholder vote, the Scheme timeline has been impacted by extended valuation procedures and legal consultations. The delay has also been compounded by recent national holidays in Australia, Vietnam, and Cambodia. The company noted that a revised timeline will be disclosed once the Independent Expert finalizes its report and the necessary court dates are secured.
The Scheme of Arrangement would enable strategic alignment between Donaco and ONR, with ONR continuing to show strong interest in Donaco’s long-term growth potential in Southeast Asia’s gaming sector. This remains a key focus area for stakeholders monitoring ASX300-listed entities, given the increasing role of regional tourism and entertainment infrastructure in post-pandemic recovery.
In addition to the Scheme update, Donaco has provided new clarity on its Cambodian tax obligations, particularly regarding Value Added Tax (VAT) on gross gaming revenues. Effective 1 January 2025, a 10% VAT is applicable following updated legal interpretation. While the Cambodian authorities have not yet issued a formal tax assessment, Donaco has provisionally estimated an additional liability of approximately A$666,000 for the third quarter of FY2025 should the VAT obligation materialize.
The company is currently engaging with Cambodian tax authorities on the scope of Prakas No. 1080 and the potential for double taxation concerns. These discussions are ongoing, and Donaco aims to resolve the situation to ensure clarity on its future tax exposure.
This development is also being watched by investors tracking opportunities among ASX dividend stocks, especially as changes in regulatory regimes can influence cash flow projections and capital allocation strategies. For those following the ASX300 index, updates like these provide valuable insight into operational risks and compliance costs in emerging markets.
Donaco’s transparency around both its strategic plans and regulatory interactions reflects a commitment to long-term stakeholder engagement as it navigates complex legal and cross-border tax environments.
