Aussie Casino Company Donaco Gets Done Over in Cambodia

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Re: Aussie Casino Company Donaco Gets Done Over in Cambodia

Post by SternAAlbifrons » Wed Sep 11, 2019 1:52 am

This company claims to be an innocent victim with a sound business plan.
I reckon it is a stock exchange scam. (australian ASX)

"Beware of Canaccord bearing casino stocks
Myriam Robin Columnist
Mar 12, 2019

If Canaccord's brokers hit the phones bearing small-cap casino stocks, providence suggests investors should not answer. Or at the very least, be sure to sell out before the proverbial hits the fan.

The Canadian firm has long been the broker of choice for former ASX darling Donaco, whose $US360 million purchase of Star Vegas in 2015 (located in Cambodia, despite the name) was partly funded by a 60¢-a-pop equity raising Canaccord underwote. That share price held for a while, then proceeded to tumble. Just as well MD Joey Lim – the grandson of Genting founder Lim Goh Tong – offloaded $15 million worth of shares for 40¢ each back in 2017 (though that's just a portion of his family's massive stake). Shares closed at a mere 7¢ on Monday"
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Re: Aussie Casino Company Donaco Gets Done Over in Cambodia

Post by CEOCambodiaNews » Sat Oct 12, 2019 3:54 pm


Rough Finish for Donaco Financial Year
By Casino Aus - October 12, 2019

Donaco International reports progress in its latest financial statements. While issues like the Cambodia controversy surrounding the Star Vegas and upper management changes presented challenges for Donaco this year, the last quarter shows that changes have led to some progress.
Full Year Revenue
At the end of September, Donaco released its full-year financials for the year ending June 30, 2019.

Total revenue for the year was $86,263,580, down significantly from the $92,606,141 revenue in 2018. Other key figures were:

Star net gaming revenue was down 9.9%
Aristo net gaming revenue was down 15%
Net slot machine revenue declined 24.5%
EBITDA declined 37.2%
Comprehensive loss was $174.4 million, up from $110.6 million in 2018
Reported loss after tax was $194 million, up from $24.2 million in 2018
https://www.casinoaus.com/news/rough-fi ... cial-year/
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Re: Aussie Casino Company Donaco Gets Done Over in Cambodia

Post by SternAAlbifrons » Sat Oct 12, 2019 4:58 pm

And this years results ^^ come on top of the previous couple of years declines.

2017/18
VIP turnover decreased 52%, gaming revenue fell 40%, EBITDA dove 52% and Donaco wrote down Star Vegas’ license value by AU$143.9 million.

In the first half of FY18/19,
revenue stabilized but EBITDA fell 29% to AU$13.2 million, and Donaco wrote down another AU$38.2 million of license value.

(EBITDA is a measure of a company's operating performance.
Earnings before interest, tax, depreciation and amortization )

They have a new management team - and they better be good.
There has been near total neglect of on-floor management as they have been having epic boardroom and courtroom battles.
Lost all four court battles in three jurisdictions. Cambodia, Singapore and Australia.
Appealing most of these decisions, so more distraction and legal fees.

Lots of upside tho'..
As they say in the casino stock spruiking game.

Recommendation: Sell
Price target: Whatever you can recover. and be grateful.
Last edited by SternAAlbifrons on Sat Oct 12, 2019 5:28 pm, edited 1 time in total.
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Re: Aussie Casino Company Donaco Gets Done Over in Cambodia

Post by SternAAlbifrons » Sat Oct 12, 2019 5:15 pm

Further to ^^
The reported neglect - lack of supervision and effective management - of on-floor business operations since inception reinforces my view that the primary business the founders were focussed on was a stock exchange scam.
Plus the largess of salary/directors fees/consultancies/legals/travel expenses/company Beemers etc.
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Re: Aussie Casino Company Donaco Gets Done Over in Cambodia

Post by willyhilly » Sat Oct 12, 2019 6:01 pm

Scam.
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Re: Aussie Casino Company Donaco Gets Done Over in Cambodia

Post by SternAAlbifrons » Sat Oct 12, 2019 6:31 pm

$500million scam.
disappeariod, so far
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Re: Aussie Casino Company Donaco Gets Done Over in Cambodia

Post by CaptainNemo » Sat Oct 12, 2019 7:09 pm

Sounds like they would have been better off buying $500m of national lottery tickets.
I'm not like other boys...
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Re: Aussie Casino Company Donaco Gets Done Over in Cambodia

Post by CEOCambodiaNews » Wed Oct 30, 2019 3:51 am

Casino group Donaco plans name change in AGM proposals
Oct 22, 2019
Asian casino operator Donaco International Ltd is proposing to change its name to “Pan Asian Leisure Ltd”. The plan is among proposals due to be put to the shareholders at the annual general meeting (AGM) on November 29.

The name swap would be “a public statement that we are leaving the past behind,” said a letter from the board filed on Monday with the Australian Securities Exchange.

“The financial performance of the company during the past two financial years has been unacceptable,” it added.

There will also be a proposal at the annual meeting to replace the entire current board, but that is not part of the reboot effort of the existing management.

On October 11 the firm said it considered the board change request an invalid one. But the company stated nonetheless that its 19.25 percent shareholder One Nut Road Ltd – a subsidiary of Argyle Street Management Ltd, an institutional investor – had backed holding such a board meeting in order to clear the air over the matter.

In its latest filing Donaco said that Patrick Tan Teck Lee – one of the people proposing himself as one of a new five-strong board upon a removal of the current board – has had business dealings with one of three Thai entrepreneurs with whom Donaco has had a long-running dispute over the Star Vegas Resort and Club in Poipet, Cambodia.

“In the board’s view, the decline in [Donaco] financial performance is largely due to the breaches of the non-compete agreement by the Thai vendors of the Star Vegas business,” noted Monday’s filing.

The company has launched legal proceedings against the Thai vendors, and an arbitration claim is ongoing in Singapore.

“Expert witnesses have valued the company’s claim in the amount of US$240 million,” noted the filing inviting stockholders to vote at the annual meeting.

It further stated that in “retaliation” for this claim, the Thai vendor parties had launched a number of claims in the Cambodian courts, which had “caused disruption to the Star Vegas business”.

Donaco said: “In particular, the Thai vendor has sought to terminate the registered perpetual lease of the land on which the Star Vegas business sits.”

In Monday’s filing the casino group suggested it had “addressed the concerns” expressed by a proxy advisory firm regarding last year’s executive remuneration report.
https://www.ggrasia.com/casino-group-do ... proposals/
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Re: Aussie Casino Company Donaco Gets Done Over in Cambodia

Post by SternAAlbifrons » Wed Oct 30, 2019 4:43 am

Thanks News. for keeping us up to date.
For those that are following this saga, the GGRA link above is well worth reading. ^^

It should not surprise at all, stock exchange listings all over the world are full of scams like this.
- but it is still staggering that such a blatant and obvious dodgy con is continuing under the sanction and auspices of the Australian Stock Exchange.

Insider job from the start - and obviously still is, eg
"In its latest filing Donaco said that Patrick Tan Teck Lee – one of the people proposing himself as one of a new five-strong board upon a removal of the current board – has had business dealings with one of three Thai entrepreneurs with whom Donaco has had a long-running dispute over the Star Vegas Resort and Club in Poipet, Cambodia."
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Re: Aussie Casino Company Donaco Gets Done Over in Cambodia

Post by CEOCambodiaNews » Thu Feb 13, 2020 9:48 am

Donaco says Reichel leaving Feb 12, names new secretary
Feb 07, 2020
Donaco International Ltd, an Australia-listed boutique operator of casinos in Indochina, has announced that the company’s general counsel and secretary, Ben Reichel, will be leaving the firm “by mutual agreement” on February 12. Mr Reichel had already resigned from the firm’s board in November.

“Mr Reichel will continue to be available to assist the board and the company after that date [February 12] via a mutually agreed consultancy agreement,” said Donaco in a filing on Friday.

The statement quoted Donaco’s chairman Mel Ashton as saying: “We have appreciated Ben Reichel’s professionalism in assisting with the transition to the new board. We are sad to see him go, but we respect his decision, and we are pleased that his expertise and knowledge of the company’s businesses will continue to be available in his role as a consultant to the company.”

The firm announced also on Friday the appointment of Marika White, an executive director of Emerson Corporate Services, to act as Donaco’s new company secretary, with effect from February 12. Australia-based Emerson Corporate is said to provide compliance and company secretarial services to public and private companies.

Donaco’s flagship casino hotel venue, the Star Vegas Resort and Club (pictured), is near Cambodia’s border with Thailand, a country where casino gambling is illegal. Its Aristo International Hotel and associated casino are near Vietnam’s border with China.

The group’s management is again in a period of transition after a boardroom battle and resignations. In early December chief executive Paul Arbuckle tendered his resignation, after only six months at the helm. June 24 is scheduled as his final day with the company.

The casino operator announced earlier this week that it was suspending – for two months – all litigation between the company and the former owners of its Star Vegas Resort and Club. The two parties have agreed to use the two-month period for settlement negotiations.
https://www.ggrasia.com/donaco-says-rei ... secretary/
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