Donaco Faces ASX Suspension as Court Approval Looms for Takeover
Donaco International Limited shareholders have overwhelmingly approved the proposed acquisition by On Nut Road Limited, clearing a critical hurdle in the takeover process. The scheme now awaits final court approval before implementation.
- 98.11% of votes cast in favor of the acquisition scheme
- 77.50% of shareholders present voted for the scheme
- Final court approval scheduled for 7 August 2025
- Scheme expected to become effective on 8 August 2025
- Donaco shares to be suspended from ASX trading post-approval
Shareholder Approval Secures Major Milestone
Donaco International Limited has taken a decisive step toward its acquisition by On Nut Road Limited, with shareholders overwhelmingly voting in favor of the proposed scheme of arrangement. The resolution passed with an impressive 98.11% of votes cast supporting the deal, reflecting strong shareholder confidence in the transaction's terms and future prospects.
This vote marks a critical milestone in the acquisition process, signaling broad acceptance among investors and clearing a key procedural hurdle. With 77.50% of shareholders present and voting endorsing the scheme, the company has demonstrated robust backing for the takeover.
Next Steps – Court Approval and Implementation
Despite this strong shareholder endorsement, the scheme remains subject to final approval by the Supreme Court of New South Wales. The court hearing is scheduled for 7 August 2025, where the judge will consider the scheme's fairness and compliance with legal requirements. Assuming the court grants approval and all other customary conditions precedent are met or waived, the scheme is expected to become effective on 8 August 2025.
Following this, Donaco shares will be suspended from trading on the Australian Securities Exchange, effective from the close of trading on 8 August. The formal implementation of the scheme, including payment of the scheme consideration to shareholders, is anticipated on 19 August 2025.
Implications for Donaco and Its Investors
The acquisition by On Nut Road Limited represents a significant change in ownership for Donaco, a player in the gaming and leisure sector. The scheme's approval suggests shareholders view the offer as favorable, potentially reflecting confidence in the strategic direction under new ownership or the premium offered.
Investors should note the suspension of Donaco shares from the ASX as the scheme takes effect, which will temporarily limit liquidity. The transaction’s completion will also reshape Donaco’s corporate structure and market presence, with potential longer-term impacts on operational strategy and financial performance.
As the process moves toward finalisation, market participants will be watching closely for the court’s decision and any updates on the satisfaction of remaining conditions.
Bottom Line?
With shareholder approval secured, all eyes now turn to the court’s verdict and the final steps toward Donaco’s ownership transition.
Questions in the middle?
- Will the Supreme Court approve the scheme without conditions or alterations?
- What are the remaining customary conditions precedent that could delay or derail the scheme?
- How will On Nut Road Limited’s ownership impact Donaco’s strategic direction and market performance?
