Operator Donaco to conduct a strategic review

Donaco International, which operates of Star Vegas Resort and Club and other locations in Vietnam and Cambodia, is planning to conduct a strategic review of its activities, as its present share price is not in sync with its assets.

In a statement issued last week, Donaco said that it is considering various ways to eliminate or restructure its bank debt and free cash flow to conduct capital management initiatives. The total debt owing is US$39.9m, secured against the assets of the Star Vegas business, not its Aristo business.

It said that discussions are under way with “several parties” who have put forward proposals to unlock the value of the company’s assets and provide value to shareholders. It is expected that the strategic review will be issued in around three months.

The Star Vegas Resort and Club is a casino in Poipet, Cambodia, on the border with Thailand and was established in 1999. It is the largest of the Poipet casino hotels with more than 100 tables and 1400 slots. The Aristo International Hotel is a casino in northern Vietnam, close to the Chinese border, and was established in 2002. It is now a five-star casino resort with 400 rooms.