Ashurst advises Donaco International on its proposed A$55.59 million acquisition by Argyle Street Management

Global law firm Ashurst has advised ASX-listed Donaco International Limited (Donaco) on its scheme of arrangement with On Nut Road Limited (ONR) regarding ONR’s proposed acquisition of 100% of the shares in Donaco that it does not already own.

Donaco operates leisure and entertainment businesses across the Asia Pacific region. ONR is a special purpose vehicle managed by Argyle Street Management Limited (ASM), a Hong Kong-licensed fund manager with more than US$2 billion of assets under management. ONR has been an investor in Donaco since 2019 and currently holds 12.84% of Donaco’s issued capital.

If the scheme is implemented, each scheme shareholder will receive $0.045 in cash per Donaco share held, representing a significant premium to Donaco’s undisturbed share price. The proposed scheme offers Donaco shareholders the opportunity to de-risk their investment at an attractive premium. 

Partner Murray Wheater said:

"We are pleased to have advised Donaco on entering into a scheme implementation deed with ONR. The offer represents a 50% premium for Donaco shareholders based on recent trading prices. The scheme has been unanimously recommended by the Donaco board, and we look forward to working towards its implementation later this year."

The Ashurst team was led by partner Murray Wheater, who was assisted by: senior associates Josh Walsh and Jemimah Giblett and associates Benjamin Paganin and Bronte Campion (Corporate Transactions).