Star Entertainment reaches deal to sell 50% stake in Brisbane resort to HK investors
Star is selling its interest for A$53 million, of which A$45 million was paid in March.
The Australian company will also take two-thirds of the Dorsett and Andaz hotels — currently under construction — from its Hong Kong-based shareholders. Star will also retain its rights to any future development at the Gold Coast operations, it said.
Trading in Star's shares was halted by the exchange operator before the market opened.
Talks broke down in early August after investors Far East Consortium (0035.HK), opens new tab and Chow Tai Fook Enterprises — both seeking to exit the joint venture — refused to extend negotiations.
The failure left Star liable to repay A$41 million to the investors before September 5.
Star, Australia's second-largest casino operator, has been under severe financial strain after years of regulatory scrutiny and lawsuits linked to money-laundering allegations. Chow Tai Fook and Far East each hold a 2.8% stake in Star.
The key parts of the deal are materially consistent with the agreement that was announced in March, when Star laid down initial plans to sell its stake in the Brisbane development.
The Queen's Wharf casino and hotel complex, the newest of Star's three precincts alongside Sydney and the Gold Coast, was developed with the backing of its Hong Kong shareholders.
($1 = 1.5349 Australian dollars)
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