Inside Asian Gaming

IAG MAY 2019年5月 亞博匯 60 IN FOCUS A hearing is scheduled for June in Singapore on Donaco’s US$190 million arbitration claim against Somboon. In Australia, Donaco has frozen Somboon’s 148 million shares and withheld payment of a AU$19 million management fee. Asked about the effectiveness of legal actions, Reichel says, “Our job is to achieve the best result for our shareholders.” Somboon is suing Donaco in Thailand for defamation and in Cambodia to overturn Donaco’s lease on the Star Vegas land, which he still owns. He reportedly hasn’t cashed Donaco lease payment checks to bolster his claim. WILD CARD LENDER The wild card is Orchard Capital Partners (OCP) Asia. Lim defaulted on a loan, giving OCP Asia his 27.25% Donaco stake. OCP Asia bought an additional 9.35%. Lim, who remains on Donaco’s board, has appealed to Australia’s Takeovers Panel to stop the market purchase. Now Donaco’s largest shareholder, OCP Asia did not respond to requests for comment. It has lodged the former Lim holding with a custodian, suggesting it wants a quick sale, and taken no role in Donaco operations, sources say, including the 10 April appointment of former Australian gaming regulator David Green to Donaco’s board. Separately, Donaco will soon complete its strategic review that could recommend a breakup. “In the Board’s view, the current share price is in no way reflective of the value of the company’s assets,” Donaco’s December review announcement states. Global Market Advisors Senior Partner Andrew Klebanow calls Star Vegas and Aristo “distinct properties with completely different business models. While there are some companies that can manage diverse assets in distinctly unique markets, most cannot. In this case, there is probably greater value in selling each individual asset than combined.” Even in bad times Star Vegas produces three times the gaming revenue and EBITDA of Aristo. “Star Vegas is still number one in Poipet and a great property,” Fortuna Investments Director Tim Shepherd, a co-founder of Australia-listed frontier market casino operator Silver Heritage Group, says. Notwithstanding increasingly possible Thai casino legalization, Poipet has room to grow, with a rail link near completion and an airport in development. Star Vegas could attract interest from Macau junkets or other Poipet operators, notably Somboon . Donaco’s Star Vegas property in Poipet, Cambodia Donaco旗下Star Vegas在柬埔寨城市波貝的物業