Australian casino and hotel company Donaco International has announced the appointment of Paul Arbuckle as its new chief executive officer, as the company faces a challenge from a group of dissident shareholders. Interim CEO Benjamin Lim, who also served as managing director, has left the business along with former chief operating officer Gerald Tan.
In a separate release, the company said that it will hold an extraordinary meeting on July 18, following a May requisition from shareholders Spenceley Management and Antonia Caroline Collopy, who seek the removal of two board members. Dissident investor James Spenceley is the founder of telecommunication company Vocus Communications and serves as chairman of Southeast Asian casino operator Silver Heritage.
The investors, which own no more than a 5% stake in Donaco, are targeting directors Joey Lim Keong and Benjamin Lim Keong Hoe. Lim’s 27% stake in Donaco was seized by Asian investment firm Orchard Capital Partners in 2018 after defaulting on a loan. Lim was sacked from his role as managing director and CEO of Donaco in March following a leave of absence due to “health and personal matters.”
Donaco said that it has received legal advice on the request and its board will announce a date for an extraordinary general meeting in due course.
Shares in Donaco are trading down 8.7% on Wednesday in Australia.