Staging something akin to a Lazarus-like reincarnation, early indications suggest that battle-weary Star Entertainment Group (ASX:SGR) has staved off what the market had all but concluded was dead in the water, with an 11th hour deal.
By all accounts, brokers didn’t really expect the stock to resume trading, after it was placed in a trading halt last week.
However, it’s understood that management is in the throes of brokering a deal to sell its stake in recently opened Queen’s Wharf – its Brisbane-based crown jewel asset – to Hong Kong-based partners Far East Consortium and Chow Tai Fook - which already own a stake in the business.
Details are lacking, but initial reports suggest the deal amounts to a $50 million loan.
While this may not prevent the casino operator’s eventual demise, it kicks it further down the road and keeps the market guessing.
As part of that deal, these two investors are understood to be taking control of Star’s Brisbane casino operation.
Meanwhile, Star’s shares remain suspended after the company failed to submit its 1H FY25 accounts by last Friday.
Star has been struggling with a massive liquidity crunch.
In addition to owing $430 million to a syndicate of lenders, it also owes $1.6 billion to its brand-spanking new Queen’s Wharf complex.
Star employs over 8,000 staff across NSW and QLD but also received nothing in the way of financial assistance from either state government.
Star last traded at $0.11 a share; its share price is down around 80% in one year and 42% year to date.
