Two of Australia’s prominent billionaires, Chris Morris and Sam Arnaout, are in a fierce competition to acquire the Reef Hotel Casino in Cairns, Queensland. The Reef Casino Trust, which operates the casino and an adjoining hotel, has received conditional proposals valuing the assets well over A$200 million, but there are concerns about the actual valuation of the trust units.
Chris Morris, a major figure in Queensland’s tourism sector and co-founder of Computershare, is advancing negotiations after completing due diligence. He aims to add the Reef Casino to his existing portfolio, which includes several other properties in the region.
On the other hand, Sam Arnaout, CEO of Iris Capital, has initiated his due diligence and sees this as a strategic move into Queensland’s gaming market. Despite a slight drop in table gaming revenues, the casino’s overall performance remains strong, credited to an increase in visitation and electronic gaming sales.
Shareholder approval will be required for the acquisition. Previously, the Reef Casino had been under offer back in 2013, which underscores its ongoing attractiveness to major investors.
Key Points
- Chris Morris and Sam Arnaout are competing to buy the Reef Hotel Casino with proposals exceeding A$200 million.
- Morris has already completed his due diligence and aims to expand his tourism investments in Queensland.
- Arnaout, CEO of Iris Capital, sees the acquisition as a way to enter Queensland’s gaming market.
- Despite a drop in table gaming revenue, the casino remains profitable due to increases in visitation and electronic gaming.
- The potential deal requires shareholder approval and echoes past bids for the Reef Casino.
Why should I read this?
If you’re keen on the high-stakes game of casino acquisitions, this article is a must-read! It highlights the fierce rivalry between billionaires over a key asset in Queensland’s gaming landscape. Understanding these dynamics could give you insights into the future of the casino business in Australia. Save yourself some time, we’ve done the heavy lifting for you!