Hard Rock joins ‘conga line’ of suitors for embattled Star

The chances of Star Entertainment passing into foreign hands have increased as overseas suitors swoop on the embattled casino group.

Star Entertainment has been approached by potential suitors.

The chances of Star Entertainment passing into foreign hands have increased as overseas suitors were looking to swoop on the embattled casino group which is fighting to retain lucrative gaming licences.

Star shares soared as much as 22 per cent on Monday after the local partner of US-based Hard Rock Cafes emerged as a potential buyer of the embattled gaming group that continues to face a bruising inquisition at the Bell II inquiry.

Star confirmed that it had “received inbound interest from a number of external parties regarding potential transactions” that could throw a financial lifeline to the struggling firm.

Adam Bell SC is conducting his second inquiry into Star’s suitability to hold a casino licence in Sydney, following a probe in 2022 that found it had not met its obligations to prevent money laundering and other mis­conduct.

Star said it was not the recipient of a direct proposal from Florida-based Hard Rock Hotels and Casinos but had received “inbound interest from a number of other external parties including a consortium of investors” that included Hard Rock Hotels & Resorts (Pacific).

Star said it understood the entity was a local partner of Hard Rock.

Late Monday night Hard Rock International has contradicted a statement from the troubled casino operator that it had been approached by a local partner of the US company.

In a statement, Florida-based Hard Rock said it wanted to “make it clear that Hard Rock International is not involved in, nor has it authorized, any discussions, activities or negotiations on its behalf in connection with a proposed bid for Star.

“Hard Rock International has similarly not authorized the use of the Hard Rock brand in connection with any proposed bid for Star by any third party.”

Hard Rock said it was currently investigating “this matter and will pursue all necessary legal actions to protect our brand and reputation.”

“We urge stakeholders and the public to rely only on official communications from Hard Rock International for accurate information regarding our business activities and partnerships,” the company said.

Other players in the wings are thought to be Star’s former long-time shareholder, Malaysia’s Genting Group.

Star said the nature of the interest to date had been “confidential, unsolicited, preliminary and non-binding”. It said it remained focused on its remediation activities in NSW and Queensland and participating in the second Bell inquiry.

Star shares ended the day up 20 per cent at 54c. The stock was trading as low as 38.5c in late April.

Veteran stockbroker Charlie Green, of Hunter Green IB, said despite its recent troubles Star would appeal to many established gambling businesses. “There will be a conga-line of bidders once Bell II finishes, particularly for its Queensland assets,” he said.

The Queensland government on Friday gave Star a seven-month reprieve on the suspension of its casino licences in the state, despite damaging claims at the Bell II inquiry.

In August Star is expected to open its $3.9bn Queen’s Wharf project in Brisbane, a sprawling project that features four new luxury hotels, 50 new restaurants and bars, and 1500 apartments.

Hard Rock Hotel and Casino in Atlantic City, New Jersey.

It will dominate the CBD, employ thousands of workers and potentially attract more than 1.4 million visitors each year.

The Bell inquiry on Monday heard a defence of the performance of former Star chief executive Robbie Cooke and chairman David Foster, who resigned as the company’s relationship with the NSW Independent Casino Commission (NICC) deteriorated.

Luke Livingston, counsel for Mr Foster, said Mr Cooke and Mr Foster were “not on a frolic of their own’’ in their relationship with the casino regulator and had continued to receive the backing of the board concerning their approach.

Mr Livingston said the naming of the men at the inquiry as ‘‘barriers to suitability’’ in the company’s struggle to recover its Sydney casino licence was personally damaging and unfair.

Mr Livingston said personal emails between Mr Foster and Mr Cooke that indicated a hostile attitude to the NICC and its manager Nicholas Weeks had been taken out of context.

He said emails from Mr Foster to Mr Cooke that indicated the NICC was “prepping for war” and “we better do the same” was a response to a perceived threat to the company.

“It was a fleeting reaction and quickly corrected,” Mr Livingston said.

James Renwick SC, counsel for Mr Cooke, said it was unfair for three members of the board, including current chair Anne Ward, to later use an anonymous whistleblower complaint to justify their decision to recommend Mr Cooke depart from the company.

“The short point we make is that it was unfair for these directors to have regard to an anonymous, uninvestigated whistle­blower complaint that was never put to Mr Cooke,” Mr Renwick said.

“The better course would have been to put those allegations to Mr Cooke or not take them into account at all.”

The inquiry also heard Star Entertainment chief controls officer Rav Townsend was “conscientious and collaborative” in discussing the troubled casino operator’s remediation efforts with the regulator. Ms Townsend had previously been accused of misleading the inquiry over claims she made to the NICC that source-of-wealth checks of gamblers were not completed as stated, an accusation she has denied.

David McLure SC, counsel for Ms Townsend, said in no sense was Ms Townsend involved in concealment of anything.