Reef Casino Trust receives purchase offer from Iris Hotel Group
The proposal includes the acquisition of RCSL and Casinos Austria International (Cairns).
Australia.- Reef Corporate Services Limited (RCSL) has announced that it has received a confidential, non-binding and highly conditional proposal from Iris Hotel Group to acquire 100 per cent of the units in Reef Casino Trust (RCT). The proposal includes the acquisition of RCSL itself and Casinos Austria International (Cairns), the operator of the Reef Hotel Casino.
The board of RCSL has granted Iris a four-week period of exclusive due diligence. Discussions remain confidential and incomplete, and there is no certainty that discussions will lead to a transaction. Earlier this week, a halt was placed on the securities of RCT due to speculation of a possible ownership change.
On February 21, RCT posted a distributable profit of AU$10.1m (US$6.4m) for full year 2024. Revenue and other income reached AU$25.5m (US$16.1m), primarily derived from rental income from the Reef Hotel Casino. That’s a decrease of 3.1 per cent in year-on-year terms. Total revenue at the Reef Hotel Casino complex was above the prior year but costs, primarily payroll and regulatory-related costs, were higher.
Visitation to the Reef Hotel Casino increased by 1.5 per cent, primarily due to local and domestic visitors with proportionally fewer international guests. Electronic gaming revenue rose by 3.2 per cent. Meanwhile, table gaming revenue decreased by 8.3 per cent due to a lower win rate and fewer premium players.
Hotel revenue was up 3.9 per cent year-on-year and food & beverage revenue increased by 5.5 per cent. According to the company, ongoing promotions, functions and live entertainment resulted in continuing strong visitation leading to more sales from the food and beverage outlets.
