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In a bold move to expand its gaming portfolio, Iris Capital has made a formal takeover bid for the Reef Hotel Casino in Cairns, offering A$177 million (US$116 million) to acquire the publicly listed Reef Casino Trust (RCT). The Sydney-based hotel and casino operator, through its Iris Cairns Property Trust, announced its off-market cash offer at A$3.5541 per unit—a premium of nearly 18% above RCT’s last trading price on July 11 and over 30% above the unit price prior to February, when initial interest in the casino was revealed. The announcement marks a significant development in North Queensland’s hospitality and gaming landscape, drawing attention from both investors and regulators.

The takeover offer has been unanimously endorsed by RCT’s Independent Board Committee, which is chaired by Wendy Morris. Speaking on the deal, Morris described the offer as “a compelling premium to the recent and historical market price of RCT units,” and noted that the proposal offers certainty and immediate value for unitholders. The bid has received substantial backing from RCT’s largest stakeholders—namely Accor and Casinos Austria—who together control more than 70% of the trust's units and have confirmed their intention to accept the offer unless a superior bid materializes.

However, the deal is still subject to several conditions, including regulatory approvals under Queensland’s casino licensing laws, clearance from the Australian Competition and Consumer Commission (ACCC), and a minimum 80% acceptance threshold by unit holders. Additionally, Iris Capital intends to acquire shares in the Reef Corporate Services Limited (RCSL), the responsible entity of the trust, as well as stakeholdings in Casinos Austria International (Cairns), the company operating the casino floor. If successful, Iris will gain complete operational and property control over the casino complex.

The timing of the offer appears strategic. RCT has faced financial headwinds in recent months, with its most recent half-yearly report showing a 19% drop in net profits due to rising compliance costs and regulatory expenses. These pressures have made the trust more receptive to takeover interest. In February 2025, Iris made a non-binding indicative offer, and was soon followed by rival suitor Morris Group, led by Computershare co-founder Chris Morris. The billionaire had reportedly been conducting due diligence with an eye on integrating the Cairns property into his broader tourism and hospitality portfolio, which includes a stake in The Ville Resort-Casino in Townsville.

Iris Capital, helmed by property mogul Sam Arnaout, has been steadily building a formidable presence in Australia’s hospitality and gaming sectors. In addition to a portfolio of over 60 pubs and hotels nationwide, Arnaout owns Casino Canberra and the Lasseters Casino in Alice Springs. The Reef Casino acquisition, if completed, would strengthen his foothold in Queensland and potentially unlock tourism synergies in the tropical north.

RCT unit prices surged nearly 14% on news of the takeover, marking the trust’s biggest single-day gain in over five years and reflecting market confidence in the proposed transaction. The Bidder’s Statement from Iris is expected to be distributed by mid-September, followed by RCT’s Target’s Statement later that month, which will include an independent expert’s assessment of the offer. If the regulatory and shareholder hurdles are cleared without disruption or competing bids, the deal could be finalized by the end of 2025.

As the situation develops, the takeover of the Reef Hotel Casino stands as a defining moment in Australian regional gaming. With a strong offer on the table, established operator backing, and a seasoned industry player leading the charge, Iris Capital’s move could reshape Cairns’ casino and hospitality future—pending final approvals and the absence of a higher bidder.