Sydney pub king Sam Arnaout in $63m deal to buy Casino Canberra

Sam Arnaout’s Iris Capital has agreed to acquire the Tony Fung-controlled gaming operation after bidding war with rival publican.

Tony Fung’s Aquis Entertainment has agreed to sell Casino Canberra to Iris Capital after the Sam Arnaout-controlled group outbid rival pub group Oscars with a $63m bid.

Oscars had topped up its price for the company to $58.2m last week, after originally agreeing to buy the gaming operation earlier this year.

Late on Monday, Aquis told investors it had agreed to sell to Iris at the revised higher price, and would pay it a break fee of $1m if it later decided on a higher offer.

The sale is conditional on shareholder and regulator approval.

“In connection with the price increase, Iris sought, and Aquis agreed, that if Aquis receives any further superior proposals to acquire Aquis Canberra, Iris have the opportunity to match any such superior proposal before Aquis can terminate the share purchase agreement with Iris for a superior proposal,” the company told investors.

Pub baron Sam Arnaout’s company has bought Casino Canberra. Picture: Justin Lloyd

“The proposed Transaction involves the sale of Aquis’ primary business undertaking – Casino Canberra. The Aquis board is considering potential new business opportunities and expects to be able to provide an update to shareholders in July 2022 in conjunction with the preparation of the notice of meeting for the shareholder vote.”

Casino Canberra chief executive Allison Gallaugher said the new deal represented “a considerable value uplift to the company and its shareholders and recognises the continued strong operating performance and potential of the business”.

Canberra Casino has been acquired by Sam Arnaout.

Mr Arnaout said: “We are excited about the opportunity to acquire Casino Canberra and look forward to working collaboratively with the Aquis team in the future.”

Last year, Mr Arnaout joined the ranks of casino moguls with the $105m purchase of the Alice Springs casino.

His private Iris bought the casino from Singapore-based Lasseters International Holdings, and has pledged to overhaul the ageing Northern Territory property.

The billionaire Mr Fung is a big player in horse racing and breeding but retired as chairman of Canberra-based Aquis Entertainment in August last year, saying the board needed to be independent of its major shareholder. Fung holds just under 90 per cent of Aquis.

Completing a sale at a higher price will see Aquis finally offload the property after years of trying to sell, with plans to offload the casino to the iProsperity empire assembled by the fugitive Michael Gu collapsing ahead of his 2020 disappearance.

That deal to sell Casino Canberra was priced at $32m in late 2018 but it was terminated in early 2020 as Aquis refused to give iProsperity more time to win regulatory approval to buy the property. Months later, iProsperity collapsed and Mr Gu fled Australia.

Mr Fung picked up Casino Canberra from Casinos Australia for just $6.5m in 2014 and then pumped capital into it. The ACT government in 2018 rejected a proposal by Aquis to transform the casino and the surrounding precinct.