Star Entertainment’s planned sale of its 50% stake in the new Brisbane casino and resort to its joint venture partners for A$53 million (US$34.6 million) has fallen through less than a week after shareholders approved a rescue of the struggling company.
Star said its joint venture partners joint venture partners Chow Tai Fook Enterprises and Far East Consortium International in the Destination Brisbane Consortium (DBC) had given notice that they wanted to terminate the sale contract.
They had this right because long form documents had not been completed by 30 April, although the parties had continued to negotiate a deal.
“Despite the receipt of this notice (Star) remains willing to continue negotiations with the Joint Venture partners to give effect to the DBC transaction,” Star said in an ASX announcement.
Star also said it had received $58 million from the sale of the Star Sydney Event Centre and associated spaces and $133 million from Bally's Corporation and hotel industry billionaire Bruce Mathieson as part of a larger investment to keep the company afloat.
Shareholders last week approved investments of A$200 million by Bally’s and $100 million by Mathieson along with the issue of convertible notes under which they would own up to 53.7% and up to 10.1% of Star respectively if all notes were converted into shares.
The Star Brisbane, part of the consortium’s $3.6 billion Queens Wharf Brisbane precinct, opened in August 2024.
Star (ASX: SGR) shares rose 0.2 cents (1.38%) to 15 cents on Monday, capitalising the company at $445.7 million.
