Latest news with #Queen'sWharf
News.com.au
a day ago
- Business
- News.com.au
Sale of Queen's Wharf precinct in doubt as Star Entertainment negotiations collapse
Fresh drama is engulfing the embattled Star Entertainment group as negotiations over the sale of its marquee $1.6bn Brisbane casino collapse. Star notified investors on Monday morning that its joint venture partners in the mammoth Queen's Wharf precinct had walked away from an agreement struck in March to take over Star's stake in the complex. Under the deal, Chow Tai Fook Enterprises and Far East Consortium would acquire Star's 50 per cent stake in Queen's Wharf, known as Destination Brisbane Consortium, for $53m. 'Since the recent general meeting, the parties have continued to negotiate with a view to finalising the long form documents but, as of this morning, have not reached an agreement on the outstanding commercial issues,' the company said in an ASX release. 'This morning, The Star received from the joint venture partners a notice to terminate the heads of agreement which will become effective five business days from today, unless withdrawn earlier. 'Despite the receipt of this notice, The Star remains willing to continue negotiations with the joint venture partners to give effect to the DBC transaction.' The buy out would have rid Star of a substantial $1.4bn debt obligation as the company struggles to stay afloat amid mounting financial pressures, including declining revenues and looming penalties from casino regulators. Star would also hand over its Treasury Hotel and carpark in the Brisbane CBD under the deal. The troubled company's asset base traverses three cities: Brisbane, the Gold Coast and Sydney. Star had planned to exit Brisbane and focus its operations on the Gold Coast and Sydney, but that plan is now on shaky ground. Separately, US casino giant Bally's lobbed a $300m takeover bid for majority control of Star in April. Bally's chief executive Soo Kim said his company was prepared to 'invest significant time and resources' to return Star to 'profitability and sustainability'. 'Our team has successfully improved more than 20 individual property acquisitions over 15 years in a variety of challenging circumstances across the entire spectrum of gaming regulatory environments and market conditions,' Mr Kim said. Bally's operates 19 resorts and casinos across the US, including casinos in gaming meccas Las Vegas and Atlantic City. Star's board backs the Bally's proposal, but it must also receive shareholder and regulatory approval. Monday's update delivers another twist in Star's slow but steady breakdown. In July last year, the company boasted a market capitalisation of $1.5bn. Now it is valued at $436m, with its shares trading at 15c. Shares in the company lifted 1.4 per cent on Monday's news. The gaming giant is nearly out of cash and confronting a severe downturn in revenues as an exodus of high rollers and cost-of-living pressures hit the business. It is also battling a tangled swirl of corporate watchdog investigations and penalties for serious failures at its operations. In October 2022, the NSW Independent Casino Commission imposed a $100m fine on Star after finding the company had allowed money laundering to take place at its Sydney casino.
CNA
a day ago
- Business
- CNA
Star Entertainment's Queen's Wharf stake exit deal collapses
Australia's Star Entertainment said it had received a notice from Hong Kong's Far East Consortium International and Chow Tai Fook Enterprises to terminate the deal to sell its 50 per cent stake in its Queen's Wharf project in Brisbane. The termination is set to take effect five business days from June 30, unless withdrawn earlier. The March 7 agreement outlined the casino operator's planned exit from its equity interest in Destination Brisbane Consortium (DBC), but the parties had not resolved outstanding key commercial issues of the deal as of this morning, Star said in a statement on Monday. Shares of Star were, however, up 1.7 per cent at A$0.147, as of 0104 GMT. The casino and hotel complex was developed for A$3.6 billion ($2.35 billion), Star's website says. For years, Star and Blackstone-owned larger rival Crown Resorts have faced multiple inquiries into anti-money laundering rule violations and subsequent legal actions. Had the deal gone through, Far East Consortium and Chow Tai Fook Enterprises were set to become the sole owner of the Brisbane venture, which has luxury hotels and restaurants and other amenities. Star was, in turn, set to take on the investors' 66.67 per cent stake in a Gold Coast project in Queensland. In a separate statement, property developer Far East Consortium said that Star must repay A$10 million within 30 days of termination, failing which it must transfer its 33.3 per cent stake in Tower 1 (Dorsett) to the Hong Kong parties. "Despite the receipt of this notice, The Star remains willing to continue negotiations with the Joint Venture Partners to give effect to the DBC transaction," Star added. ($1 = 1.5314 Australian dollars)
CNA
a day ago
- Business
- CNA
Star Entertainment gets notice to end Queen's Wharf project stake selloff deal
Australia's Star Entertainment said it had received a notice from Hong Kong's Far East Consortium International and Chow Tai Fook Enterprises to terminate the deal to sell its 50 per cent stake in its Queen's Wharf project in Brisbane. The agreement was entered into by the parties with the embattled casino operator on March 7, with the termination set to take effect five business days from June 30, unless withdrawn earlier. The agreement in March outlined the basis for the casino operator to exit its equity interest in Destination Brisbane Consortium (DBC), but the parties did not reach an agreement on the outstanding commercial issues of the deal as of this morning, Star said in a statement on Monday. Far East Consortium, in a separate statement, said Star is required to repay a total of A$10 million ($6.53 million) by no later than 30 days of the date of termination. If the said amount is not repaid within the period, Star will be required to instead transfer its 33.3 per cent interest in Tower 1 (Dorsett) to the Hong Kong parties, the property developer added. ($1 = 1.5305 Australian dollars)
