Australia’s Star Entertainment rises on bids for its Brisbane joint venture

SHARES of Australia’s Star Entertainment Group rose on Monday (Feb 10) after the embattled casino operator said it received separate offers from its Hong Kong-based investors to acquire a 50 per cent interest in its Destination Brisbane Joint Venture.

The Brisbane-headquartered firm’s stock was up 9.1 per cent at A$0.12, as at 2317 GMT, and was the top gainer on the broader benchmark S&P/ASX 200 index, which was down 0.6 per cent. The stock, which is currently the top gainer on the benchmark index, has shed 42.1 per cent so far this year.

Destination Brisbane Consortium is a joint venture between Star Entertainment and its Hong Kong partners, Chow Tai Fook Enterprises and Far East Consortium. It operates Queen’s Wharf Brisbane which includes luxury hotels and restaurants, among other amenities.

Star owns 50 per cent interest in the joint venture while Chow Tai Fook Enterprises and Far East Consortium own 25 per cent each.

The casino operator said none of the proposals have provided “sufficient value” for the company and that it continues to engage with the both the parties to negotiate the proposals.

The announcement came as response to recent media report relating to the proposed offers.

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Last month, Star said it would divest its Star Sydney Event Centre assets to theatre owner and operator Foundation Theatres for A$60 million (S$51 million) as it undergoes a cash and liquidity crunch

Since 2021, Star has been embroiled in a slew of government probes over possible breaches of anti-money laundering and counter-terrorism laws at its Sydney and Queensland casinos. REUTERS