Morris Group recently submitted a revised conditional off-market cash acquisition proposal through its subsidiary MGGM Cairns No1 Pty Ltd to Reef Casino Trust (RCT), proposing to acquire all units and related assets under RCT. This proposal was modified based on the non-binding offer first made in July 2025.
According to the latest proposal, Morris Group plans to acquire all 49.8 million fully paid trust units of RCT for a total of AUD 184.3 million (approximately USD 125 million). The acquisition also includes the entire equity of Casinos Austria International (Cairns) Pty Ltd and Reef Corporate Services Limited (RCSL).
However, the direction of the transaction still has variables. According to the acquisition offer implementation agreement effective July 11, 2025, Iris Cairns Property Trust, as the trustee, has a "matching right" in the contract, which allows it to bid on equal terms when a better offer appears, thus affecting the outcome of the transaction.
The independent board committee of RCSL will evaluate the proposal with the assistance of financial and legal advisors. Currently, the committee still recommends that the fund unit holders take no action and wait for further evaluation results.
In terms of advisory lineup, Herbert Smith Freehills and Morgan Financial Company provide consulting services for RCSL, while King & Wood Mallesons provides legal support for Accor Group and Casinos Austria International.
RCSL reiterated that it still recommends the existing offer from Iris Cairns Property Trust, but the transaction requires approval from regulatory authorities and independent experts. Regarding the new proposal from Morris Group and subsequent developments of the Iris agreement, RCT will update the market according to ongoing disclosure obligations.
Meanwhile, dynamics in the Australian gambling industry are frequent—an independent review report pointed out compliance issues at Adelaide SkyCity, while Star Harbor Entertainment Company has signed a binding agreement with partners, planning to transfer some of its assets in Brisbane and the Gold Coast in stages.
