A proposed takeover deal that would see Blue Whale Entertainment Pty Ltd acquire a majority 86.99% stake in Australian-listed Aquis Entertainment may be terminated due to a lengthy delay in receiving necessary regulatory approvals.
In an update filed with the ASX, Aquis said that while all other conditions of the proposed takeover, which was unanimously approved by shareholders in March 2019, had now been met, a review by the ACT Gambling and Racing Commission was not yet complete.
Under the terms of the original transaction agreement between Aquis, its subsidiary Aquis Canberra Holdings (Aus) Pty Ltd and Blue Whale, the deal can be cancelled on 10 business days’ notice should all regulatory approvals not be received by 22 December 2019.
While that deadline has now passed, Aquis said it is “seeking an extension to such termination date to allow sufficient time for the Commission to complete its review and the ACT gaming regulatory approvals to be obtained.”
If an extension cannot be agreed, the companies will consider options for termination of the agreement, the company added.
Aquis, currently owned by Hong Kong businessman Tony Fung, has been looking to embark on an AU$330 million redevelopment of Canberra Casino, which it purchased for AU$6 million in 2014.