Casino resort investor Hard Rock International says it is not involved in an investment proposal for Australian casino operator The Star Entertainment Group Ltd. The group had on Monday been identified as part of a consortium that had made a takeover proposal for the Australian casino firm.
“We want to make it clear that Hard Rock International is not involved in, nor has it authorised, any discussions, activities or negotiations on its behalf in connection with a proposed bid for Star,” stated Hard Rock International in a Monday statement.
It added: “Hard Rock International has similarly not authorised the use of the Hard Rock brand in connection with any proposed bid for Star by any third party.”
The company also said it was “investigating” the matter, adding that it would “pursue all necessary legal actions to protect” its “brand and reputation”.
Star Entertainment said in a filing on Monday that it had “received inbound interest from a number of external parties regarding potential transactions”. The Australia-listed company did not identify in the filing the parties that had shown interest in investing in the firm.
In a Tuesday filing, Star Entertainment clarified that it had “not received any proposal directly from Hard Rock International”.
“The company has received inbound interest from a number of external parties regarding potential transactions, including an incomplete and indicative proposal from a consortium of investors which included the entity ‘Hard Rock Hotels & Resorts (Pacific)’,” stated Star Entertainment.
It added: “The Star confirms that it has not engaged in substantive discussions with the consortium in respect of its proposal.”
The exact identity or ownership of Hard Rock Hotels & Resorts (Pacific) is not clear, nor is it detailed in Star Entertainment’s Tuesday filing.
Star Entertainment’s shares dropped as much as 10 percent in early trading on Tuesday, before trading down 2.8 percent at 11.15am local time. Dealing in the firm’s shares was temporarily suspended on Monday.
The company is currently facing regulatory action in the Australian states of New South Wales and Queensland.
The firm’s licence for its flagship Sydney casino (pictured), in New South Wales, was suspended “indefinitely” from October 2022, and placed under state-government supervision.
The licences for the company’s two casinos in the state of Queensland – The Treasury Brisbane and The Star Gold Coast – were also suspended in December 2022, and placed under state-government supervision.
