Latest news with #StarEntertainmentGroup
Sky News AU
07-07-2025
- Business
- Sky News AU
Star Entertainment Group to fork out more than $36m if Brisbane Queen's Wharf sale to Hong Kong investors collapses
Star Entertainment Group could be forced to pay almost $37 million if a deal to sell its Brisbane venue fails as negotiations for the newly built casino and hotel complex continue. The casino operator last week told shareholders the pair of Hong Kong investors, Chow Tai Fook Enterprises and Far East Consortium, have threatened to ditch the agreement. Each of the investors own 25 per cent of the Queen's Wharf venue respectively and have looked at purchase the remaining half. An April 30 deadline to sign the deal, which gave Star $53m in cash and consolidated the company's Queensland operations to the Gold Coast, was never met. The Hong Kong investors on June 30 notified Star of its intention to exit the deal which was set to come into effect on Monday. Star on Monday told shareholders both parties have extended the deadline for the deal's termination date until July 31. If a deal is not struck by the deadline, Star will have to repay a $10m cash injection from the Hong Kong investors and reimburse them $26.5m for previous contributions made towards the Brisbane venue. The cash will need to be repaid within 30 days from July 7 while Star will have 60 days to repay the $26.5m if the deal falls through. The failure of the Brisbane casino sale could be devastating for Star as the project has debts of about $1.6b. Star selling the Queen's Wharf complex inspired US gaming giant Bally's Corporation to lob a takeover offer at the casino operator earlier this year. The American company has been critical of the sale and told Sky News' Business Weekend it wanted to keep all of Star's assets. 'We want to keep everything together rather than strip it apart,' Bally's CEO Robertson Reeves said in April. 'We think that things tend to operate better if they're one larger organisation where you can actually generate benefits for each of the properties one by one by making one tweak in one place.' Despite receiving the $300m takeover bid from Bally's alongside local publican Bruce Mathieson, Star still faces crippling financial woes. It awaits a massive fine from financial crime watchdog AUSTRAC that could be upwards of $400m over historical misconduct and faces further regulatory measures aimed at stamping out money laundering. It has received $58m from the sale of its Sydney casino's event centre and another $133m from the Bally's-Mathieson takeover. Star was on the brink of administration earlier this year and was forced into a trading halt after it missed the deadline for its financial results for the first half of the 2025 financial year.
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
Nikkei Asia
25-06-2025
- Business
- Nikkei Asia
Australia's Star casino shareholders approve $195mn rescue package
Star Entertainment Group has been struggling to stay afloat amid a growing debt crisis and regulatory investigations over the past two years. © Reuters SYDNEY (Reuters) -- Star Entertainment Group's shareholders approved on Wednesday a 300 million Australian dollar ($195 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 U.S. casino firm Bally's Corporation and the Mathieson family, which is Star's largest existing shareholder.
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.
Sky News AU
24-06-2025
- Business
- Sky News AU
Star Entertainment Group announces new appointments as it looks to rebuild under Bally's Corporation ownership
Star Entertainment Group has gone on a hiring spree as the embattled casino operator gears up for a major rebuild after years of scandals and financial woes. Helen Galloway, a director of Hockey Australia and chair of Bank of us, has been appointed the independent chair of The Star Sydney as the casino operator looks to implement a new governance framework and decentralise to its three properties in NSW and Queensland. Ms Galloway's appointment is part of a raft of changes Star announced in November in agreement with regulators and gaming commissions in both NSW and Queensland. The company has also appointed hospitality veteran Jennifer Cronin as interim CEO of The Star Gold Coast alongside Patrick McGlinchey as Star's group chief legal officer, ex-KPMG's Rowena Craze as the group chief risk officer, Sarah Derry as chief people officer and Peter Meliniotis as group chief information officer. Star's CEO Steve McCann said the appointments were critical to the casino operator as it rebuilds. 'I am pleased to finalise these key appointments for the Star,' Mr McCann told shareholders. 'These appointments add to the depth of experience and talent at the board and executive level and are a key step in the Star's progress to suitability.' Star's appointments come after it signed a $300m takeover deal with US gaming giant Bally's Corporation as it was teetering on the brink of collapse for months. The company was forced into a trading halt earlier this year after it failed to publish its financial results by its deadline due to its dire position. It was finally able to publish its results after receiving the offer from Bally's Corporation and publican billionaire Bruce Mathieson that injected $100m of short-term cash into Star. Star in April revealed revenue was down more than 16 per cent for the first half of the 2025 financial year. It also reported a $21m loss for the first three months of this year as dwindling visitor numbers, gaming restrictions and ex-Tropical Cyclone Alfred plagued the embattled casino operator. Star revealed revenue for the third quarter of the 2025 financial year was down nine per cent from the December quarter to $271m – a 35 per cent year-on-year fall. Its earnings before interest, taxation, depreciation and amortisation – which measures the business' core profitability – was down to a $21m loss from an $8m drop in the previous quarter. The company is also likely to face a $400m fine from the financial crimes agency Austrac over money laundering breaches over several years and will come under further restrictions to crack down on illegal activities.
