Cash-starved casino and entertainment group Star Entertainment has received a life-sustaining injection of liquidity after completing the sale of properties in Sydney but its survival remains far from guaranteed.
Star said its wholly owned subsidiary The Star Entertainment Sydney Properties Pty Ltd had completed the divestment of The Star Sydney Event Centre and other spaces in The Star Sydney complex to Foundation Theatres for A$60 million (US$35.4 million).
The company said the sale was completed because all regulatory consents, including from the NSW Independent Casino Commission (NICC), had been obtained.
“The $60 million exclusivity fee paid by Foundation Theatres into escrow has now been released to The Star as consideration for the disposal,” Star said in an ASX announcement.
This follows news that Star had accepted a $300 million buyout offer from US-based Bally’s Corp, which would give the American gaming company a 56.7% stake through the conversion of capital notes.
The NICC had insisted that the proceeds of the sale of the Sydney properties ($58.1 million) be held in escrow until the day after shareholder approval is obtained for Bally’s investment at a meeting in late June 2025.
But Star said if shareholder approval was not obtained, it may ask for the release of the amounts in escrow subject to the satisfaction of certain financial viability conditions.
To raise funds and to avoid entering administration, the struggling group has also agreed to sell its half stake in the new Star Brisbane casino and resort to its joint venture partners Chow Tai Fook Enterprises and Far East Consortium International.
However a A$940 million refinancing deal with alternative asset manager Salter Brothers Capital collapsed recently.
Star (ASX: SGR) shares remain suspended from trading on the ASX as directors have not signed off on its financial accounts due to concerns about whether it can be considered as an ongoing concern because it may run out of cash.
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