Latest news with #Bally's-led
West Australian
3 days ago
- Business
- West Australian
Star Entertainment's Queen's Wharf casino deal teeters on verge of oblivion
Embattled Star Entertainment's deal to sell a 50 per cent stake in its $1.6 billion Brisbane casino to Hong Kong investors is on the brink of collapse. Hong Kong joint venture partners Chow Tai Fook Enterprises and Far East Consortium in March said they would take over Star's stake in Queen's Wharf, known as Destination Brisbane Consortium, for $53 million. Under the deal, Star would also hand over its Treasury Hotel and carpark in the Brisbane CBD. But Star on Monday said it had received a notice to terminate the heads of agreement — a preliminary document outlining the key terms of the deal — from the joint venture partners. The deal will terminate next Monday if the notice to Star is not withdrawn. 'Since the recent general meeting, the parties have continued to negotiate with a view to finalising the long form documents but, as of this morning, have not reached an agreement on the outstanding commercial issues,' Star said in a statement to the ASX. 'Despite the receipt of this notice, The Star remains willing to continue negotiations with the joint venture partners.' The news sent shares 6.9 per cent lower to 13.5¢. It comes less than a week after Star shareholders overwhelmingly backed the $300m injection from US casino group Bally's Corporation and billionaire publican Bruce Mathieson by way of convertible notes and subordinated debt. The rescue deal, first announced in April, takes Bally's and Mr Mathieson's combined interest in the casino group to over 50 per cent. Star has been under financial stress as a result of regulatory pressure over breaches of anti-money laundering laws and cost-of-living challenges weighing on Australian households. Its woes have created a cash crisis that left Star reliant on the Bally's-led rescue for survival.
Business Times
25-06-2025
- Business
- Business Times
Australia's Star casino shareholders approve A$300 million rescue package
[SYDNEY] Star Entertainment Group's shareholders approved on Wednesday (Jun 25) an A$300 million (S$250 million) rescue package that will allow the embattled Australian casino group to remain operational, according to a company presentation. The rescue bid is being led by US casino firm Bally's Corp and the Mathieson family, which is Star's largest existing shareholder. The proposal put to shareholders at a Sydney meeting was approved by more than 98 per cent of investors' proxy votes, according to company slides shown at the event that was live-streamed. The final result of the vote will be announced later on Wednesday. Bally's said it has applied to the New South Wales and Queensland governments and regulators for approval to run casinos. 'We look forward to the completion of our probity review so that we can get on with the critical mission to put The Star on a sustainable path,' Soo Kim, Bally's chairman, said in a text message after the vote. 'We are raring to get on with it.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Australia's second-largest casino operator after Blackstone-controlled Crown Resorts, Star has been struggling to stay afloat amid a growing debt crisis and regulatory investigations over the past two years. The rescue deal consists of multi-tranche convertible notes and subordinated debt instruments, and after the notes are converted, Bally's and the Mathieson family will control around 56 per cent of Star's issued capital. Star chairman Anne Ward said the company had no other option than to support the Bally's-led bid after interest from Oaktree and Salters Brothers collapsed earlier this year. 'The strategic investments ... provide cash funding and assist Star's ability to continue as a going concern, helping to avoid outcomes such as voluntary administration, which is likely not in the best interests of shareholders,' Ward told the meeting. Star said in March that it would sell half of its A$3.6 billion Queen's Wharf project in Brisbane to Hong Kong companies Far East Consortium International and Chow Tai Fook Enterprises for just A$53 million. It has also sold a theatre attached to its main casino in inner-city Sydney as part of its efforts to stay afloat. Bally's owns 19 casinos across 11 US states, according to its website, and the Star investment is its first in Australia. REUTERS
New Straits Times
25-06-2025
- Business
- New Straits Times
Australia's Star casino shareholders approve US$195 million rescue package
SYDNEY: Star Entertainment Group's shareholders on Wednesday approved an A$300 million (US$195 million) rescue package that will allow the embattled Australian casino operator to continue operations, according to a company presentation. The rescue bid is led by US casino firm Bally's Corp and the Mathieson family, which is Star's largest existing shareholder. The proposal, put to shareholders at a Sydney meeting, was approved by more than 98 per cent of proxy votes, according to company slides shown at the event, which was live-streamed. A final vote result will be announced later on Wednesday. Australia's second-largest casino operator after Blackstone-controlled Crown Resorts, Star has been battling a deepening debt crisis and regulatory probes over the past two years. The rescue deal comprises multi-tranche convertible notes and subordinated debt instruments. Upon conversion of the notes, Bally's and the Mathieson family will control around 56 per cent of Star's issued capital. Star chairman Anne Ward said the board had no choice but to support the Bally's-led bid after rival interest from Oaktree and Salters Brothers collapsed earlier this year. "The strategic investments ... provide cash funding and assist Star's ability to continue as a going concern, helping to avoid outcomes such as voluntary administration, which is likely not in the best interests of shareholders," Ward told the meeting. In March, Star said it would sell half of its A$3.6 billion Queen's Wharf project in Brisbane to Hong Kong-based Far East Consortium International and Chow Tai Fook Enterprises for just A$53 million. It has also sold a theatre attached to its flagship casino in Sydney's inner city as part of efforts to stay solvent. Bally's owns 19 casinos across 11 US states, according to its website, and the Star deal marks its first investment in Australia.
