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Highly illiquid Reef Casino Trust (ASX:RCT) has confirmed reports in The Australian the company is currently handling two ‘takeover bids’ – one from private Iris Hotel Group, and another from Morris Group.
(Morris Group is headed by the founder of ASX tech stock Computershare, Chris Morris.)
The Cairns-based casino is the latest such institution to cause a stir in ASX-world with Crown de-listing in relatively recent history, and, Star and SkyCity both facing huge regulatory pressure.
If anything, Reef is the best behaved child of the lot.
But it is towards valuations of the enterprise implied by talks with Iris and Morris Group respectively that Reef has concerned itself with on Wednesday.
“[Reef] confirms that, as at the date of this announcement, the board of RCSL is in ongoing and incomplete negotiations with both Iris and Morris Group in relation to indicative, non-binding and highly conditional proposals to acquire 100% of the units in RCT that it has received from each of them,” the company wrote on Wednesday.
“[Reef] notes that recent media speculation contemplates that any such transaction would be valued at more than A$200m.”
This is sort of true, and also sort of not true, it turns out – which is why Reef was quick to remind its shareholders not to make any investment decisions based on reports in The Australian or elsewhere.
“[Reef] confirms that both Proposals are in excess of A$200m for all of the component parts. However, whilst price and value allocation remain under negotiation, RCSL also confirms that the value allocated to the units in RCT under both Proposals is less than A$200m.”
Sweet technicalities.
RCT last traded at $2.95.
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