Reef Casino Trust receives acquisition proposal from Morris Group
Morris Group has issued a conditional takeover proposal at AU$3.70 per share.
Australia.- Reef Corporate Services Limited, responsible for the Reef Casino Trust, has received a proposal from Morris Group to acquire all issued units in Reef Casino Trust through an off-market cash takeover. The proposal is valued at approximately AU$184m.
The offer of AU$3.70 per unit mirrors the terms of a bid by Iris Cairns Property, but includes additional elements involving the acquisition of related entities. Like the competing proposal, Morris Group’s proposal would depend on casino operator Casinos Austria International (Cairns), agreeing to be acquired. Directors of Reef Corporate Services continue to recommend the Iris offer. RCT claims that apart from the price, Morris Group’s offer is “otherwise on substantially similar terms and conditions”.
The trust stated that the alternative proposal will need to be considered in detail by the independent board committee and RCSL’s financial and legal advisers. “RCSL also notes that it has obligations under the TIA in relation to competing proposals and that Iris has been informed of the alternative proposal,” it said.
