Troubled Australian casino business The Star Entertainment Group Ltd says that, to date, it has not yet reached an agreement with its joint venture partners for the sale of its stake in the Queensland, Australia real estate venture containing The Star Brisbane casino resort (pictured).
On February 10, Star Entertainment acknowledged it had received an offer to acquire its 50-percent interest in the complex.
The offer was from Hong Kong-headquartered and privately-held Chow Tai Fook Enterprises Ltd and Hong Kong-listed Far East Consortium International Ltd, which are already investors in the Destination Brisbane Consortium.
Each of the Hong Kong investors controls a 25-percent stake in Destination Brisbane Consortium, and each also holds a 4.99-percent stake in Star Entertainment.
In a Friday filing to the Australian Securities Exchange, the casino firm confirmed that it “has been in discussions” with its joint venture partners in respect of a possible disposal of Star Entertainment’s 50-percent equity interest in the Destination Brisbane Consortium.
But it stated: “The Star has been unable to reach an agreement with its joint venture partners to date.”
On Thursday, local media reports said Chow Tai Fook Enterprises and Far East Consortium were to provide a AUD50-million (US$31.6-million) loan to Star Entertainment, which would help avoid the casino operator going into administration.
Star Entertainment’s shares have been suspended from trading on the Australian Securities Exchange after the company failed to lodge its half-year results on February 28. The company also runs The Star Sydney casino resort in Sydney, New South Wales.
The casino firm has for months been searching for financing options as it battles a liquidity crisis.
In mid-February, the Australian firm said it would consider a proposal from funds associated with Oaktree Capital Management, a U.S.-based asset management firm, which offered to provide AUD650 million. The money would be to refinance debt held by the gaming firm.
Star Entertainment said at the time that the proposal was subject to “numerous conditions”. No further disclosures were made on this matter since then.
