CAIRNS: Reef Casino Trust (ASX:RCT) has received a conditional, non-binding bid from Morris Group, offering approximately A$184 million for all issued units of the trust in an off-market cash takeover.
The proposal, submitted through MGGM Cairns No1 Pty Ltd, values each unit at A$3.70 and mirrors the key terms of a prior offer from Iris Cairns Property Pty Ltd, disclosed earlier this month.
Morris Group’s alternative bid also includes a plan to acquire Casinos Austria International (Cairns) Pty Limited and Reef Corporate Services Limited (RCSL), the trust’s responsible entity. These acquisitions hinge on future negotiations and execution of share purchase agreements.
RCSL’s Independent Board Committee, along with its legal and financial advisers, will assess the proposal’s viability and timeline. Under the Takeover Bid Implementation Agreement signed with Iris on July 11, RCSL remains bound by conditions around competing offers, including a matching right in favor of Iris.
RCSL has urged unitholders to take no action regarding the Morris Group proposal pending further evaluation. The Board continues to recommend the Iris offer, subject to regulatory approvals and the outcome of an independent expert review.
Morgans Corporate Limited and Herbert Smith Freehills Kramer are advising RCSL, while King & Wood Mallesons is advising major unitholders Accor and Casinos Austria International.
Reef Casino Trust is a single-purpose trust owning The Reef Hotel Casino in Cairns, Queensland.