** Shares of Donaco International DNA.AX rise 41.7% to A$0.0425, their highest level since Feb. 28

** Hospitality business says has entered into scheme implementation deed for its all cash acquisition

** On Nut Road, a special purpose vehicle managed by Argyle Street Management, will acquire 100% of the shares in Donaco that it does not already own via a scheme of arrangement for A$0.045 cash per Donaco share - co

** Scheme Consideration implies a value for Donaco equity on a fully diluted basis at A$55.59 million ($35.17 million)

** Stock rose as much as 43.3% earlier in the day, marking its biggest intraday gain since Dec. 18, 2020

** Stock up 51.8% YTD

($1 = 1.5808 Australian dollars)

(Reporting by Adwitiya Srivastava in Bengaluru)

((Adwitiya.Srivastava@thomsonreuters.com))