Iris Cairns Property, part of the Iris Capital group, has increased its takeover bid for Reef Casino Trust (RCT), which owns the Reef Hotel Casino in Cairns, Australia.
The new offer values RCT at AU$185.3 million (US$119.1 million). Unit holders are now being offered AU$3.72 (US$2.39) per unit in cash—up from the previous AU$3.55 (US$2.28). This represents a 4.8% premium over RCT’s most recent closing price.
Who Supports the Iris Capital Deal?
RCT’s board, including independent directors, has unanimously recommended accepting the revised offer—provided no better bid comes in and the independent expert agrees it’s fair. Major shareholders Accor and Casinos Austria International, who together own over 71% of RCT, have also backed the deal under the same conditions.
What Changed in the New Proposal?
The updated offer includes:
- A break fee of AU$1.9 million (US$1.2 million) if the deal falls through
- Removal of competition approval requirements, as Iris Capital has already received clearance
- A valuation that’s 36% higher than RCT’s February price , according to Agbrief.com.
This shows Iris Capital’s strong commitment and confidence in the acquisition.
Why Is Iris Capital Buying Reef Casino Trust?
Iris Capital already owns:
- 2 casinos in Canberra and Alice Springs
- 60+ hotels across Australia
Adding the Reef Hotel Casino would expand its footprint in Queensland and strengthen its gaming and hospitality portfolio.
What Happens Next for RCT Shareholders?
RCT has confirmed that talks with other potential buyers have ended. A full transaction summary will be sent to unit holders in late September. If approved, Iris Capital will acquire all 49.8 million units, gaining full control of the trust.
