Iris Capital launches US$116m bid for Reef Casino Trust
Sydney-based group secures support from Accor and Casinos Austria for deal
Australia.- Iris Capital, a Sydney-based hospitality and gaming operator, has made a AU$177m (US$116m) takeover offer for casino operator Reef Casino Trust (RCT). It proposes to acquire all ordinary units of the trust at AU$3.5541 per share, representing a 30 per cent premium over the February 25 market price and a 17.7 per cent premium over the July 11 closing price.
The proposal, made through Iris Cairns Property Trust, has already secured support from RCT’s largest shareholders, Accor and Casinos Austria International, which together hold over 70 per cent of the trust’s shares. According to the Independent Board Committee chaired by Wendy Morris, the proposal “represents a compelling premium” and delivers clear value to shareholders.
The acquisition is subject to several conditions, including approval of casino and liquor licenses, competition clearance, and a minimum acceptance threshold of 80 per cent. Iris Capital would acquire the casino operator itself and Reef Corporate Services, which manages its property in Cairns.
While revenue rose in 2024, driven largely by electronic gaming, RCT’s profit outlook remains cautious, with projected declines of up to 19 per cent. Iris Capital previously made an offer last year, and Morris Group also expressed interest.
