Fung has done a deal announced on Friday for a backdoor ASX listing of Canberra Casino via Discovery Resources. Dalton describes Discovery as a Namibian oil & gas explorer. So it's just as well they are getting out of that business as their handful of Namibian exploration tenements are all metals related. Discovery recently reported net assets of just $1.6 million. The current board includes a Tom Pickett who is presumably the same Tom Pickett who also appears with our old friend Michael King and our new friend Narelle McBain on the board of Diversified Mining.
Yes, it's the ghosts of MFS Octaviar again, but wait, there's more! Fung acquired a substantial stake of 17.3% in Discovery via an off-market transaction back in February. This was through his 4JS Pty Ltd which has previously been the vehicle for his rural interests. The 4JS website is no longer and I understand the Mt Garnet property may have been sold or was on the market.
The seller to Fung of that stake in Discovery Resources was Twin Oaks Investments Pty Ltd with notification signed by director Paul Manka. Yes, it's that old MFS Octaviar crew yet again: Deals made after collapse, court told
If you are unfamiliar with the colourful background of the MFS Octaviar imbroglio there is plenty available via google but here are just a few links from the past pertaining to the relevant identities: How Michael King's dream turned to dust; Inside the MFS EGM fiasco; Avenue’s conflicted connection to troubled MFS
I went looking for any background to the Twin Oaks holding in Discovery but couldn't find an initial notice of becoming a substantial holder. That was because Manka filled out the wrong form for a change to an existing substantial holding. In fact he filled out the wrong form twice after an 'arithmetical error' the first time, by which he means he forgot to include a small portion of the holding.
Twin Oaks acquired the substantial holding of 4,450,000 shares in Discovery for a total consideration of $597,951.61 in February 2013. Just three weeks later they flipped the lot to Michael King for $614,383.63. King held onto them until June 2014 when he then flipped them back to Twin Oaks again, also for $614,383.63. That parcel has now been flogged to Fung in February also for $614,383.63 consideration. It's an interesting history. At least the price has been stable!
Anyway, Discovery Resources is set to become Aquis Entertainment Limited listed on the ASX. Aquis will be issued shares for the transfer of Canberra Casino and Fung will end up controlling 89% of the company following this transaction. There is also a capital raising planned for $2 -$3 million.
Alex Chow will become a new director. Chow's most prominent career background seems to have been with New World China Land Limited which has previously known some controversy in Hong Kong: Leung Chin-man appointment controversy. His previous executive career at New World seems to have gone missing in the bio. New World group has also made an appearance in a previous post here: Tony Fung: Past business deals and the BVI
The full announcement released to ASX on Friday includes further details, a pro-forma balance sheet and comment that the company may consider "other potential projects in Queensland and elsewhere".