Reef Casino Trust (ASX:RCT) today announced the lodgement of its Target’s Statement regarding the off-market takeover bid by Iris Cairns Property Pty Ltd. Reef Casino Trust (ASX:RCT) is a single-purpose trust that owns and operates The Reef Hotel Casino Complex in Cairns, Far North Queensland, which includes a casino, a 5-star hotel, bars, restaurants, and conference facilities. The statement formally responds to the unconditional A$4.67 cash per unit offer from Iris Cairns Property Pty Ltd (Iris), which is seeking to acquire all issued units it does not already own in the Trust.
The independent directors of Reef Corporate Services Limited, in its capacity as responsible entity for RCT, have unanimously recommended that unitholders accept the Iris offer. This recommendation is made in the absence of a superior proposal and subject to the appointed independent expert not revoking its opinion that the offer is fair and reasonable. Lonergan Edwards & Associates Limited, the independent expert appointed by RCT, concurred with this assessment, concluding the A$4.67 offer is indeed fair and reasonable to unitholders, again, in the absence of a superior proposal. The offer price represents a substantial 29.54% premium to RCT’s closing unit price on 23 September 2026, the day prior to the bid’s announcement, and a 73.53% premium to the three-month volume weighted average price to 25 February 2025.
Key reasons cited for the recommendation include the certainty of a cash value, significant premium, and the limited liquidity expected for remaining minority unitholders. As at 21 October 2026, Iris holds a substantial 96.33% relevant interest in RCT units. This significant holding means that unitholders who do not accept the offer would become minority investors, facing potential challenges such as reduced trading liquidity and the bidder’s stated intention to seek delisting from the ASX. The offer is unconditional and is scheduled to close at 7:00pm Sydney time on 9 November 2026, unless extended or withdrawn.
