Court approves Donaco scheme booklet distribution for acquisition

The final court hearing will take place on August 7.

Australia.- Donaco International has received approval from the Supreme Court of New South Wales to distribute a scheme booklet and convene a scheme meeting as part of On Nut Road Limited’s (ONR) proposed acquisition of the company’s shares.

Donaco reported that BDO Corporate Finance had concluded that the scheme is fair and reasonable and in the best interests of shareholders, in the absence of a superior proposal. The Donaco board recommends shareholders vote in favour of the scheme.

The company will send the scheme booklet to shareholders on June 30. Shareholders will meet on August 4, and the final court hearing will take place on August 7. If approved, the transaction will become effective on August 8 and will be completed by August 19.

Donaco reiterated that the delay to the original scheme timeline arose due to “a delay in third parties returning valuation inputs to the Independent Expert, lengthier than expected analysis of change of control provisions under Cambodian and Vietnamese law, and various holiday periods across Australia, Vietnam and Cambodia.”

For the first half of the financial year, Donaco reported net revenue of AU$21.83m (US$13.6m), up 12 per cent in year-on-year terms, while earnings before interest, taxation, depreciation and amortisation (EBITDA) reached AU$11.39m (US$7.10m), up 17.0 per cent. According to the company, the rise highlights steady growth following stringent financial management and increased traffic from tourism.