If you are sitting at a poker table, Tony Fung is the chip leader with pocket aces that just checked on the river. As the majority shareholder, he’s stoked to see Aquis Entertainment (ASX: AQS) throw away $1 million to secure much more by accepting a rival offer for Canberra Casino where a new buyer has entered the picture at the 11th hour. 

With Aquis having voiced their intentions to exit their ownership of Canberra Casino where Fung has encountered ongoing development delays, the Board had unanimously recommended shareholders accept the $52 million offer from The Oscars Group in May 2022. 

While the sale would have been a big win for Aquis, of which Fung owns almost 90%, after acquiring the casino in 2014 for $6.5 million with plans for a $307 million development that was ultimately knocked back before Fung moved his attention to better investment opportunities, stepping down from the Board in August 2021. 

Since the Oscars offer though, Aquis advised the market that it had been approached by Iris CC Holdings which has now formalised an offer of $63 million on near-identical terms. 

Should there be no further superior offers and shareholders accept the Iris one, a $1 million break fee would be payable to Oscars, effectively chump change for the $11m differential in offers. 

“The revised Transaction represents a considerable value uplift to the Company and its shareholders and recognises the continued strong operating performance and potential of the business,” said Aquis and Casino Canberra CEO, Allison Gallaugher. 

No stranger to the sector, Iris is familiar with casino operations as the owners of Lasseters in Alice Springs, a multi-purpose hospitality venue that includes casinos, hotel, restaurants, day spa and major functions. Other businesses within the Iris Capital portfolio include a portfolio of pubs all over Australia and the Ibis budget hotel chain. 

Since growing the substantial portfolio of hospitality venues, Iris has been expanding into residential apartment buildings and commercial precincts. 

Should no superior proposal be received, Aquis will recommend shareholders accept the Iris offer at a General Meeting expected to be held in August 2022. 

Sale proceeds will be used to pay off a $33m loan to Aquis Canberra Holdings Pty Ltd while the Company seeks other business opportunities in Australia. Should they not be found, Aquis Entertainment would likely return a dividend to shareholders.