Vietnam – Donaco increases share in Lao Cai to 95 per centBy Phil - 1 August 2013
Donaco International, a company floated on the Australian stock exchange, is to raise its 75 per cent share in the joint venture company operating the Lao Cai International Hotel, in Vietnam.
Donaco has reached agreement with co-owner and state-owned business PetroVietnam Sapa Tourism Joint Stock Company (PVST) to increase its share from 75 per cent to 95 per cent at a cost of US$4m. The Government of Vietnam has agreed to owning just five per cent of the property.
Based in Northern Vietnam, the Lao Cai International Hotel, is located on the border with Yunnan Province in China. It has been in operation Donaco since 2002.
The hotel is the first fully licensed table gaming business in Vietnam. It is currently being expanded from a 3-star 34 room hotel, to a brand new resort complex with 428 hotel rooms.
The two entities confirmed they have signed a non-binding Memorandum of Understanding which is subject to legal procedures which could take around three months.
Donaco also wants to ‘at least double’ the gaming floor’s current quota of eight tables with the plan to go as high as 40 tables. It plans to invest $52m into the refurb. It currently has just over 100 slots.
The venue’s revenue surged by 42 per cent in the first quarter of 2013 reaching $3.9m with profits increasing by 48 per cent to $707,000.
Donaco also has a share in a gambling comparison site called Way2Bet.