Australia casino operator Star says suitors circling as Hard Rock reportedly makes offer
TROUBLED Australian casino operator Star Entertainment Group said several suitors have approached the company about possible deals, after a newspaper reported that a consortium led by Hard Rock Hotel & Casino made a takeover proposal.
Star “has received inbound interest from a number of external parties regarding potential transactions”, the Sydney-based company said on Monday (May 20). “At this stage, none of the approaches has resulted in substantive discussions.”
Star’s statement followed a report in the Australian Financial Review (AFR) that a group of suitors led by Hard Rock, operator of The Mirage in Las Vegas and other casino resorts in North America, had recently submitted an offer to Star.
According to the newspaper, the proposal included injecting fresh capital into Star, re-branding the company and separating its properties from the casinos.
Star’s future in Sydney, home to the company’s flagship casino, is hanging in the balance as a fresh inquiry determines whether it has made enough progress into addressing wrongdoing to keep its gaming license.
The casino has been run by a government-appointed manager since a damning report in 2022 found it had lax anti-money laundering controls, allowed patrons to flout China’s capital controls and encouraged problem gamblers.
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A spokesperson for Star declined to comment beyond the company’s statement. Hard Rock did not respond to questions, the AFR reported.
Star’s chief executive officer and chairman resigned this year and the company’s shares have tumbled 60 per cent in the past 12 months. The company now has a market value of A$1.3 billion (S$1.2 billion).
It’s not clear what any successful buyer of Star would end up owning. Star told the Sydney inquiry last week that it did not consider itself fit to operate the city casino in its own right. It argued that the current arrangement that allows Star to run the casino with an external manager should be extended.
The Sydney inquiry’s final report is due on Jul 31. Meanwhile, Star’s two other casinos – in Gold Coast and Brisbane in the state of Queensland – are also operating under government caretakers.
Hard Rock is working with Australian and US investors on its Star proposal and is being advised by KPMG, according to the AFR report.
The bid aims to turn the Australian company into a business less dependent on casino income and more focused on entertainment, restaurants and hotels, the report said. BLOOMBERG
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