Wednesday, November 13, 2013

Reef Casino Shanghaied

A shock move by Tony Fung with a takeover offer from Aquis for the Cairns Reef Casino and Canberra Casino.  This certainly raises a few questions and it is noted that the proposal does not seem to be conditional on approval of the Aquis project.

Assuming Aquis approval what is the future of the Reef Casino in its current location? It is reported that Fung will use the Licence for the Aquis project. Campbell Newman has suggested that there would be up to seven casinos in Queensland with three additional casino licences with two regional. Previously it could be assumed that Aquis would be one of those additional licences but presumably that could now mean three additional licences elsewhere as well as Aquis?






The offer of $4.354 per unit would seem almost too good to refuse at a large premium to recent prices. Reef is currently up 40% today trading at $4.00 after gains also in the previous four days. The previous 52 week trading range has been $2.24 to $2.85.

The casino boom rolls on with formal approval for Packers high roller venue at Barangaroo in Sydney yesterday. As previously posted Echo have also placed the Townsville casino on the market with a reported asking price of $75 million.


Links:

A Hong Kong Billionaire Is Making A Bid For Casinos In Cairns And Canberra

Echo unveils $1.5bn Queensland casino plans

James Packer rolls NSW Labor over Barangaroo casino:
With such a comprehensive victory in Sydney, Packer can move on to Queensland where Premier Campbell Newman has swallowed the international tourism excuse for issuing new casino licences. That actually works when there is a competitive cluster of casinos offering a much bigger gambling experience (Macau, Las Vegas) or a single spectacular development in a geographically advantaged position without much competition from alternative tourism attractions (Singapore).
Packer's business with a dodgy regime

AQUIS PLANS NOW CLEAR - REMOVE CASINO FROM CAIRNS CBD AND ELIMINATE ANY REASON FOR ANYONE TO GO ANYWHERE IN CAIRNS BUT AQUIS


Update: PR release from Aquis
Once the Aquis project is fully developed, the Reef Casino will be integrated into the development as a “CBD campus” and linked casino venue.
There seems to be an assumption here that the existing licence would allow two such venues? As previously posted the Reef Casino licence comes with favourable tax concessions: Casino taxes: Queensland v The Rest


Update2: View from Rupert's window: Tony Fung wants Reef Hotel Casino licence for Aquis mega-resort casino at Yorkeys Knob




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