Cambodia’s Star Casino Asset at Centre of Donaco’s USD 55.6 Million Takeover by On Nut Road

• 3 April 2025
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Donaco International’s flagship Cambodian asset, the Star Vegas casino and hotel complex in Poipet, is now at the heart of a USD 55.6 million acquisition deal by On Nut Road, a Hong Kong-based special purpose vehicle managed by Argyle Street Management. As part of the takeover, shareholders will receive USD 0.045 in cash per Donaco share, representing a 54.10% premium to the 90-day volume-weighted average price of USD 0.029 as of 14 March, according to Trading View on 17 March 2025.

The Star Vegas complex—established in 1999 and located on the border of Thailand and Cambodia—remains Donaco’s largest and most profitable asset. Billed as the most luxurious and successful resort in the Cambodian city of Poipet, the integrated property offers 385 hotel rooms, over 150 gaming tables, and 1,000 slot machines. It is strategically positioned as the closest legal gaming destination to Bangkok, attracting high volumes of Thai patrons. However, looming competition from new casino legislation in Thailand—specifically plans to license casino franchises in Bangkok—is expected to significantly impact customer flow to the Poipet resort.

Donaco non-executive chair Porntat Amatavivadhana acknowledged that while the company has remained stable post-pandemic, “our financial headwinds have been compounded due to limited profit margins and a lack of substantial investor confidence.”

He added, “The dependence on a single major shareholder for financial stability becomes even more critical in light of the economic strains brought about by the pandemic.” The takeover, he stated, offers shareholders certainty via a straightforward cash payment, shielding them from the unpredictable nature of the entertainment and gaming sectors.

In addition to competitive pressures, Donaco faces operational difficulties due to infrastructure issues along the Thai-Cambodian border. The company cited recent electricity disruptions in towns between the two countries, which have led to intermittent power supplies. These conditions are likely to increase operational costs and create additional strain on the company’s border-based operations.

Beyond Cambodia, Donaco also owns a 95% stake in the Aristo International Hotel and boutique casino in northern Vietnam, developed in partnership with the Vietnamese government. Opened in 2002 and located near the Chinese border in Yunnan province, the five-star resort includes 400 hotel rooms, multiple gaming tables, and a license to operate up to 300 electronic gaming machines.

The acquiring company, On Nut Road, was founded in 2002 as a licensed fund manager and currently manages more than USD 2 billion in assets. Thai hotel billionaire Chanin Donavanik reportedly controls the fund through Argyle Street Management. On Nut Road first became a significant investor in Donaco in 2019 and presently holds a beneficial interest of approximately 12.84% in the company’s issued capital.

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