Latest news with #StarEntertainment
AU Financial Review
16-07-2025
- Business
- AU Financial Review
Star's Steve McCann, newly married, still sweating on big payday
Wasn't April a banner month for Star Entertainment's chief executive Steve McCann. First, the casino group finally lodged those long-delayed first-half financial accounts, which were about as bad as you'd expect. And then, we're told by multiple sources, McCann got married. In Melbourne, on Anzac Day.
ABC News
07-07-2025
- Business
- ABC News
Star's Brisbane casino has been in the headlines for months: What's the latest?
The deadline to reach a deal on the sale of Star Entertainment's stake in Brisbane's Queen's Wharf precinct has been extended, as the casino operator desperately fights to avoid administration. It's the latest development in a long and complex tale of financial woe for the company which began during the construction of Queen's Wharf, got much worse after findings of misconduct, and have now reached crisis point thanks to a plummeting share price and bank balance. In November 2017, 20,000 square metres of Brisbane's CBD was torn down in preparation for the new Queen's Wharf precinct, a joint venture between Star Entertainment Group, Chow Tai Fook Enterprises, and Far East Consortium. In all, the casino, four hotels, retail venues and restaurant spaces would cost an estimated $3.6 billion — Queensland's biggest ever infrastructure project. Shortly after work began, Star's share price opened at just over $5 — a record high. Then came two years of pandemic lockdowns, major flooding, and an outbreak of mould — to name but a few issues — which added hundreds of millions to the price tag and many months to the timeline. Originally planned for 2022, the precinct wouldn't open until August 2024. "Queen's Wharf became a drain because, as a 50 per cent joint venture, Star was on the hook for huge capital contributions and a big chunk of the project's $1.4 billion debt," Graeme Hughes from Griffith University's business school said. These problems might have been manageable, according to Mr Hughes, if Star wasn't also dealing with the fallout from a 2021 investigation by Australia's financial intelligence agency, AUSTRAC and the New South Wales Independent Casino Commission (NICC). "Star's deep-seated problems really began with widespread failures in anti-money laundering compliance," Mr Hughes said. These breaches led to The Star losing its casino licences in both New South Wales and Queensland, the appointment of a manager, significant fines from state regulators, and a looming penalty from AUSTRAC, reportedly up to $400 million. In September 2021, when the NICC first announced it was looking into Star Entertainment, its share price was $3.50. By the time its new Brisbane casino opened on August 29, 2024, that had plummeted to 57 cents a share, making it difficult for the company to raise funds and keep its new business operating. The following day a second NICC report was published, which found The Star was still unsuitable to hold a casino licence. At the time of writing, Star shares are trading at 13 cents. In January this year, the company told the ASX it had just $79 million left in available cash and had burned through $70 million since the end of September. In March, desperate for money to stave off insolvency, Star agreed to sell its 50 per cent stake in Queen's Wharf to its joint venture partners Chow Tai Fook Enterprises and Far East Consortium for $53 million. As part of the agreement, Star would keep the rights to operate the casino. "This was meant to free up around $700 million in debt and $212 million in future contributions, making Star more asset-light and boosting its liquidity," Mr Hughes said. Just a few days later, Star reached a deal with US casino giant Bally's for at least $250 million in exchange for a controlling stake in the company. Star's largest individual shareholder, Bruce Mathieson, offered an additional $50 million if Bally's came on board. But just when things appeared to be improving for Star, their joint venture partners suddenly announced they were terminating the agreement to buy Queen's Wharf, effective July 7. On Monday, the company notified the ASX that the deadline for termination has now been extended to July 31st. Reaching a deal, Mr Hughes said, is of "existential" importance to Star. "Bally's chairman Soo Kim has openly stated that their $300 million investment is contingent on Star's solvency," he said. If Star Entertainment was to fall into administration, those administrators would take control of Star's assets, including Queen's Wharf, and its liabilities. Associate Professor David Morrison, an expert in insolvency law from the University of Queensland, said Star's stake in Queen's Wharf could be sold and the property leased back to them. "There would be an agreement between the new partner and Star as to how to deal with the property, but if Star are holding firm on the value they think they bring to the table, then buyers will be thin on the ground, especially in this market. "A buyer would have to be comfortable with a company in Star's circumstances to be a joint landlord and take the risk of default under the agreement." The Queensland government has indicated it wants a casino to continue operating at Queen's Wharf but won't offer financial support or concessions to Star. "Let the regulatory authorities do their job and let Star tell the taxpayers what they want and what will be returned. "If lenders are nervous then taxpayers ought to stay out of it." Mr Hughes said if Star was forced to sell the rights to operate a casino, buyers were circling. "Bally's and the Mathieson family would be prime candidates to scoop up remaining assets cheaply," he said. "Other global casino giants like MGM Resorts, Caesars Entertainment, or private equity firms could also be interested in acquiring a distressed Australian casino portfolio. "Blackstone, which owns rival Crown, has also been mentioned, though regulatory hurdles for a near-monopoly would be immense." As for Queen's Wharf, he said Chow Tai Fook and Far East Consortium were "logical" choices. "The Queensland government would then conduct a rigorous process to license a new, financially sound, and compliant operator for the casino."
Business Times
07-07-2025
- Business
- Business Times
Australia's Star Entertainment gets last-minute extension on threatened casino deal exit
[BENGALURU] Australia's Star Entertainment said it had secured a last-minute reprieve from Hong Kong investors who had threatened to abandon their Queen's Wharf casino deal, with both sides agreeing to extend talks beyond a looming five-day deadline. Chow Tai Fook Enterprises and Far East Consortium, holding 25 per cent each in the project, had issued a termination notice last Monday (Jul 7), threatening to walk away from their agreement to buy Star's remaining 50 per cent stake unless conditions were met within five business days. The Hong Kong firms agreed Monday morning to 'a set of principles under which there will be certain departures from the heads of agreement', Star said, extending the termination deadline to Jul 31 to allow parties to finalise long-form documents. Shares in Star fell as much as 3.85 per cent to A$0.125, as at 0024 GMT, while the broader benchmark traded largely flat. Far East Consortium in a separate statement said discussions over the past week focused on 'matters principally relating to the orderly transition of the management of the Queen's Wharf project, to ensure certainty for the JV partners and other relevant stakeholders in facilitating the exit of The Star from the equity and management of the project'. However, Star will face financial penalties if the deal collapses. The casino operator must repay A$10 million (S$8.3 million) it received from the Hong Kong partners within 30 days, and reimburse them for their share of equity contributions made to Brisbane's new Queen's Wharf casino and hotel complex since Mar 31. Star's shareholders, late in June, backed a A$300 million bailout package designed to keep the struggling casino operator afloat. The rescue effort is spearheaded by the US gaming company Bally's Corp in partnership with the Mathieson family, Star's biggest existing investor. REUTERS
Yahoo
07-07-2025
- Business
- Yahoo
Star Entertainment buys time in $4bn saga
Star Entertainment has extended the deadline and avoided the collapse of its Queen Wharf deal, but it could cost the embattled casino. In a fresh announcement, Star confirmed that it would repay $10m of proceeds it received from joint venture partners Chow Tai Fook Enterprises and Far East Consortium if a deal to buy the Queen's Wharf casino and entertainment precinct in Brisbane wasn't reached by July 31. Star would also have to reimburse the joint venture partners $26.5m in contributions that have been made to the casino since March 31, 2025. Star now has until the end of the month to lock in a deal to sell its half of the $4bn complex to the consortium, which last week gave notice that it wanted to terminate the deal on Monday. As part of its strategy to raise much-needed cash, Star agreed to sell its 50 per cent stake in Queen's Wharf, known as Destination Brisbane Consortium, to the joint venture partners for $53m. But last week the joint venture partners announced that they wanted to walk away from an agreement struck in March to take over Star's stake in the complex. '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 an ASX release last week. Error in retrieving data Sign in to access your portfolio Error in retrieving data
News.com.au
07-07-2025
- Business
- News.com.au
Star Entertainment scrambles to save collapsing Brisbane deal
Star Entertainment has extended the deadline and avoided the collapse of its Queen Wharf deal, but it could cost the embattled casino. In a fresh announcement, Star confirmed that it would repay $10m of proceeds it received from joint venture partners Chow Tai Fook Enterprises and Far East Consortium if a deal to buy the Queen's Wharf casino and entertainment precinct in Brisbane wasn't reached by July 31. Star would also have to reimburse the joint venture partners $26.5m in contributions that have been made to the casino since March 31, 2025. Star now has until the end of the month to lock in a deal to sell its half of the $4bn complex to the consortium, which last week gave notice that it wanted to terminate the deal on Monday. As part of its strategy to raise much-needed cash, Star agreed to sell its 50 per cent stake in Queen's Wharf, known as Destination Brisbane Consortium, to the joint venture partners for $53m. But last week the joint venture partners announced that they wanted to walk away from an agreement struck in March to take over Star's stake in the complex. '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 an ASX release last week.
