Billionaire Tony Fung has his sights set on the gambling market in Cairns. He is behind the proposed Aquis mega casino resort and he has also launched a bid to take over the Reel Hotel and Casino. Recently, he has announced that the takeover process is going smoother than expected and he anticipates the that acquisition will be complete by October this year.
When the takeover bid was first launched, industry analysts anticipate that the deal would not be approved until 2015. However, it does not seem that this will be the case, as the formal closing of the offer will take place in October. “We expect to complete operational handover following the successful completion of all these aspects later this year,” says Mr Fung.
“We are continuing through the standard probity processes as well as the relevant Australian Competition and Consumer Commission and Foreign Investment Review Board and all other state and federal government regulatory processes”. The Reef Casino Trust currently owns the casino, and its unit holders are largely in favour of takeover.
So far, 77% of unit holders have expressed acceptance, but the offer must have a 90% minimum acceptance rate before the deal can move forward. With just over six months to go, it does not seem like a difficult goal to achieve. Until October, the Reef Hotel will continue to operate as usual.
Once the deal is approved, the casino will be used as part of Fung’s marketing plan to target wealthy Asian gamblers and direct their attention to the new Aquis mega casino resort which will be built in 2019. It will also be used as a training facility and a satellite casino. At the moment, this is all that has been revealed about the Reef Hotel’s future operations.
We will likely learn more once the deal is approved.
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