Star Entertainment completes Sydney centre sell-off
Star Entertainment has completed its latest market sell-off as an embattled casino tries to stay afloat after a turbulent few months.
Star Entertainment has agreed to a $60m divestment of its Sydney event centre, as the casino looks to quickly raise cash to stave off collapse.
In the casino operator’s latest move, it has completed its divestment of the The Star Event Centre and other additional spaces within The Star Sydney complex to Foundation Theatres.
“The $60m exclusivity fee paid by Foundation Theatres into escrow has now been released to The Star as consideration for the disposal,” Star said in a statement.
The completion of the deal comes just days after Star Entertainment announced it was accepting a $300m buyout from US-based casino operator Bally’s Corp.
As part of the deal, Bally’s will take a 57 per cent equity stake in Star Entertainment that has saved the Australian casino from almost certain financial collapse.
Under the proposal, Bally’s will inject about $250m into The Star, while its largest shareholder Bruce Mathieson will provide more than $50m.
According to a statement on the ASX, Star Entertainment is expecting to receive the money before the end of the week, allowing it to meet its near-term financial obligations.
The deal with Bally’s could help Star Entertainment end a tumultuous period for the casino after a $750m deal with asset manager Salter Brother fell through.
“The Star has continued to work diligently with Salter Brothers Capital in relation to the refinancing proposal but has not received a binding debt commitment letter and the refinancing proposal has now been withdrawn,” an ASX announcement stated.
Star Entertainment has been in a trading halt on the ASX since February 24 after it was unable to lodge half-yearly results.
The company also faces pressure from the corporate watchdog’s investigation into 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.
A report into the business also found the company had exploited vulnerable gamblers.
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