Michael Gu eyes Casino Canberra in US$22 million transaction
Acquisition completion will rely on shareholder approval in the next few weeks
Casino Canberra is on the verge of being bought up by one of Australia’s biggest hotel owners in a potential A$32 million (US$22.6 million) transaction set for completion in 19Q2.
In a filing to the Australian Stock Exchange, Aquis Entertainment, the current owners of Casino Canberra, announced it has entered into a binding Implementation Deed with Blue Whale Entertainment, a company owned and controlled by Michael Gu, who is also CEO of iProsperity, a private equity firm representing Asian high net worth investors, which has built a reputation for high-profile hotel acquisitions.
The transaction will see Blue Whale’s acquisition of the outstanding convertible loan and 137 million company shares held by Aquis Entertainment Canberra Holdings.
Upon closing of the transaction, Blue Whale will replace ACH as the controlling shareholder of the company at 87 percent.
Blue Whale owner Michael Gu said the acquisition will present a “unique opportunity to release a largely untapped market and provide Canberra with more world class experiences,” adding that they have plans to upgrade the casino, adding new world class restaurants and premium gaming facilities.
While Aquis’ board is in favour of the acquisition, its completion will rely on shareholder approval to be sought in the next few weeks, as well as a greenlight from the ACT gaming minister.
