Aquis completes sale of Casino Canberra to Iris Holdings
Aquis Entertainment has completed the sale of its subsidiary Aquis Canberra Pty Ltd, owner and operator of Casino Canberra to Iris CC Holdings, with the transfer of ownership effective from January 1, 2023. The sale will have Aquis Entertainment officially bow out of the casino industry as the company leaves AU$63 million richer. The company is still undecided on its next move.
The deal saw Aquis receiving a completion payment of AU$60.5 million including an initial deposit paid at signing. There is another AU$2.5 million being held in escrow to be released to Aquis in nine months providing there are no warranty claims.
From this lump sum, Aquis will subsequently pay its majority shareholder, Aquis Canberra Holdings Pty Ltd an outstanding loan repayment of AU$20.4 million that was an investment in Casino Canberra. The amount to be repaid was agreed upon after the other accrued interest was forgiven.
As a company, Aquis is yet to determine what its next course of action will be, whether to utilize the funds from the sale or remain a listed entity on the ASX. In any case, all details will be finalized by January 2023.
Aquis has also announced the resignation of Allison Gallaugher from being the director and CEO of Aquis Entertainment. Gallaugher will however continue as the CEO of Casino Canberra under the ownership of Iris Capital. Meanwhile, lawyers Simon Chan and Tony Pickett have been appointed as new non-executive directors.
Speaking on the sale, Gallaugher expressed satisfaction at being able to close the deal that had been in the works for a while. “As a Board, we are very pleased to have been able to negotiate and complete this transaction, which provides significant benefits to all stakeholders,” she said.
“We thank Tony Fung for his support since purchasing Casino Canberra, without which we would not have been able to achieve the growth in. the business which has enabled Aquis to deliver the increase in value for all shareholders culminating in the transaction with Iris.
“As a CEO and employee, I am very excited to lead the Casino Canberra under iris’s ownership and we look forward to continuing to grow the strong results we have built over the past few years and for the opportunities available for us all with Iris moving forward.
Aquis Entertainment decided to sell off Casino Canberra after failing to reach an agreement with the ACT government on the proposed use of the property. Upon purchasing Casino Canberra in 2014, Aquis Entertainment planned to install up to 500 slot machines but their request was denied by the government due to a mix of regulatory, financial and legal issues. Though the ACT government gave a counter offer that would permit the company to install 200 poker machines and 60 EGMs under stringent conditions, the offer was not profitable enough for Aquis, hence the sale.
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