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A second acquisition offer has entered the ring, this time with a bigger price tag and broader ambitions.
Australia’s Reef Casino Trust (RCT) is officially at the centre of a takeover tug-of-war, after a new bid emerged from an entity linked to the Morris Group. The offer challenges a previous proposal from Iris Cairns Property, intensifying the battle for one of Queensland’s prime gaming assets.
According to a market filing submitted on Monday, Reef Corporate Services Limited (RCSL), the responsible entity for RCT, confirmed it had received a fresh proposal worth approximately AU$184 million (US$120.8 million). The offer values RCT units at AU$3.70 (US$2.50) apiece, above the AU$3.55 per unit offered by Iris.
New bid, broader scope
This isn’t only a unit grab. The Morris-linked offer includes plans to acquire Casinos Austria International (Cairns), operator of the Reef Hotel Casino, and RCSL itself.
The proposal is conditional on the negotiation and execution of separate share purchase agreements, meaning the acquirer would control the property, its operator, and its management company. The offer also requires regulatory approvals, including the maintenance of existing casino and liquor licences, and the Foundation Agreement with the Queensland Government.
RCSL’s Independent Board Committee has been tasked with reviewing the proposal in full, citing its broader scope and structural implications. That review will determine whether the new offer shifts the board’s stance or triggers a competitive reshuffle.
Iris Cairns still in the running
The original Iris offer, lodged on 11 July, remains on the table.
Iris Cairns Property’s bid values the trust at AU$177 million (US$116.3 million) and seeks to acquire all outstanding RCT units via an off-market cash takeover. The deal is also contingent on key approvals and licence continuity.
While the financials now fall short of the Morris bid, Iris still holds a strategic advantage: under its current agreement, it has matching rights, allowing it to counter or match any competing proposal before the board can switch recommendations.
Majority shareholders back Iris
Two of RCT’s heavyweight shareholders, Accor and Casinos Austria International, control over 70% of the trust’s units. Both have signalled support for the Iris bid, giving it a strong foothold in the race.
As of now, the Directors of RCSL maintain their recommendation of the Iris offer, but they’ve also confirmed that the new bid is under active review.
This follows broader M&A activity in the Australian casino space, such as Allwyn’s acquisition of a stake in Reef Hotel Casino, signaling increased interest in Cairns assets.
Whether shareholder support shifts in response to the Morris offer’s improved financials and full asset scope remains an open question.
What’s next?
Reef Casino Trust is now a target in a two-horse race, with different price points, different structures, and different implications.
The Independent Board Committee’s review of the Morris-linked bid is underway. Iris, meanwhile, has been notified of the rival proposal and may exercise its right to match.
With licensing, shareholder alignment, and due diligence all in play, a final outcome could hinge on which party can move faster, and secure the trust of both regulators and investors.
One thing is clear: Reef Casino Trust is in demand, and this takeover saga isn’t over yet.
Source: Asia Gaming Brief
