From Proactive Investors – Donaco International (ASX: DNA) is poised to increase its 75% stake in the joint venture company operating the Lao Cai International Hotel, after reaching a non-binding agreement in principle.
The Lao Cai International Hotel, a casino in northern Vietnam, is located on the border with Yunnan Province in China – and has been operated by Donaco since 2002.
The hotel is the first fully licensed table gaming business in Vietnam, and the property is currently being expanded from a 3-star 34 room hotel, to a brand new resort complex with 428 hotel rooms.
Donaco operates the business in the Lao Cai International Hotel joint venture company – with the remaining 25% held by the Government of Vietnam, through a state-owned enterprise called PetroVietnam Sapa Tourism Joint Stock Company (PVST).
Donaco and PVST have now reached agreement in principle for Donaco to buy an additional 20% interest in the joint venture, leaving the Government of Vietnam with the remaining 5%. Donaco’s total cost to acquire the 20% stake is US$4 million.
