On-Market Buy-Back and Appendix 3C
Sydney, July 22, 2014 AEST (ABN Newswire) - Donaco International Limited (
ASX:DNA) (the Company) announces that it intends to implement an on-market buy-back for a maximum of 37.2 million shares, representing a maximum of 8% of its ordinary shares.
The buy-back is being undertaken as part of the Company's ongoing capital management program. It is expected to commence on or after 6 August 2014.
Managing Director and Chief Executive Officer, Mr Joey Lim, stated "The Board considers that the buy-back is in the best interests of all shareholders, and that the market price of shares of late does not properly reflect the Company's underlying value and potential.
"The Company has a substantial amount of cash on our balance sheet, with negligible debt, and more cash from operations constantly being added. This balance sheet strength gives us considerable firepower to pursue a strong pipeline of acquisition and investment opportunities, which we are actively working on.
"At the same time, our primary focus in assessing all investment opportunities is to ensure a strong return for shareholders. Buying the Company's shares at recent prices represents an excellent opportunity to generate strong returns.
"The buy-back will be earnings per share accretive, and will have no impact on current operating businesses. It is also consistent with our strategy of maintaining an efficient capital structure."
In accordance with the ASX Listing Rules, the prices paid for shares purchased under the buyback will be no more than 5% above the average closing price of the Company's shares over the five prior trading days.
The total number of shares to be purchased by the Company under the buy-back will depend on market conditions and volumes. The buy-back will be open for 12 months.
To view the Appendix 3C, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-DNA-807599.pdf
About Donaco International Ltd
Donaco International Limited (ASX:DNA) operates leisure, entertainment and associated technology businesses across the Asia Pacific region.
Donaco's largest business is the Star Vegas Resort & Club, a successful casino and hotel complex in Poipet, Cambodia, on the border with Thailand. Star Vegas was established in 1999, and is the largest and highest quality of the Poipet casino hotels. The property has more than 100 gaming tables, more than 1400 slot machines, and 385 hotel rooms.
Donaco's flagship business is the Aristo International Hotel, a successful boutique casino in northern Vietnam, located on the border with Yunnan Province, China. Established in 2002, the property has recently been expanded to a brand new five star resort complex with 400 hotel rooms. Donaco is a pioneer casino operator in Vietnam, and owns a 95% interest in the business, in a joint venture with the Government of Vietnam.
| ||
|
