Meet the Brisbane fundie backing Fortescue just as others steer clear
Michael Bell, chief investment officer of Brisbane-based Solaris Investment Management, has taken a large position in the beleaguered miner, making him one of the very few bigger investors to still back the company.
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ABC News
29 minutes ago
- ABC News
Star Entertainment Group signs on-again, off-again takeover deal with Hong Kong partners
Besieged gaming giant Star Entertainment has agreed to give up both running and part-owning the $3.6 billion Queen's Wharf casino in Brisbane, cutting a deal to avoid financial calamity. Star told investors this morning it had finally signed an on-again, off-again deal with its controversial Hong Kong partners, one of which was once linked to organised crime figures. That deal is still subject to clearing hurdles including regulatory checks. But, if successful, ASX-listed Star will take stakes in Gold Coast hotels near its casino there. It will also get to pocket $53 million in the deal. Star, in turn, would give up assets including its 50 per cent stake in the consortium behind Queen's Wharf, as well as the Treasury car park and hotel. The move will alleviate a heavy cash flow and debt burden on Star; the consortium had required future equity payments of $212 million and a loan facility of $1.4 billion needed to be refinanced in December this year. One concern during negotiations had been whether Star would get to retain rights and fees to manage the Queen's Wharf. The deal announced on Tuesday specifies that a replacement operator — yet to be named — will come in at some stage. In giving up the operator fee, Star receives compensation of $5 million a month until June next year, scaling up to $7 million monthly by June 2028. Star could even receive a bonus payment of up to $225 million in 2030 based partly on the performance of the consortium. The deal depends on regulatory approvals. A change of ownership would require state approval, but the government has not yet indicated whether that will happen. The Hong Kong consortium partners are Chow Tai Fook (CTF) Enterprises and Far East Consortium. In 2022, the ABC established criminal associations involving CTF, which triggered a government inquiry. Finally released earlier this year, the government report found CTF had falsely and repeatedly claimed to have cut business ties with a criminal syndicate boss. The hidden ties were with junket boss Alvin Chau through a Vietnam casino venture — Chau is now serving 18 years in prison over a billion dollar fraud by his VIP gambling outfit, or 'junket', Suncity. The-then Labor government found CTF was still suitable to hold a casino licence, arguing its lack of "candour and fulsomeness" with the regulator was due to "differences in cultural and organisational expectations". Anti-gaming activists have previously said the state should rule out a takeover due to the crime links. Attorney-General Deb Frecklington's office was contacted for comment on Tuesday. Star's financial performance had been crumbling after being smashed by regulatory inquiries and increasingly tough gaming regulations. Its shares were trading higher than $4 each in 2019, but those are now wallowing around 12 cents.
AU Financial Review
an hour ago
- AU Financial Review
CDC eyes AUKUS demand for AI with Perth data centre
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Sydney Morning Herald
2 hours ago
- Sydney Morning Herald
Star seals deal to sell Queen's Wharf casino to HK partners
Struggling casino operator Star Entertainment has rescued a deal to offload its troubled Brisbane resort to the Hong Kong-based business partners in this venture. The publicly listed company has been locked in negotiations over plans to sell its 50 per cent stake in Brisbane's Queen's Wharf casino to Chow Tai Fook Enterprises and Far East Consortium, as it scrambles to reduce debt and survive a financial crunch. Star had been unable reach an agreement with the parties before a key deadline two weeks ago, but on Tuesday it said it had entered into a $53 million binding deal. The deal will see Star sell its share of Brisbane's Queen's Wharf casino to Chow Tai Fook Enterprises and Far East Consortium and hand Star ownership of properties at the Gold Coast casino. Star is also selling a Brisbane hotel and car park at its Treasury complex, and a 50 per cent stake in a car park in Charlotte Street, Brisbane. Loading The transaction means Star will not be required to fund any equity contributions to the Queens Wharf project. If it had not entered the deal, it expected these contributions would have been at least $212 million. Star will also be released from its guarantee over a 50 per cent share of the project's debt facility. The gaming giant said it had received consent from the US casino group Bally's that took a major stake in Star earlier this year.
