Far East Consortium International Ltd said in a Hong Kong Stock Exchange filing on Friday lunchtime local time, it had so-called “heads of agreement” with privately-held Hong Kong entity Chow Tai Fook Enterprises Ltd, and troubled Australian casino operator The Star Entertainment Group Ltd, to buy out the latter’s 50-percent interest in the Queen’s Wharf Brisbane development.
The complex (pictured in a file photo) is home to The Star Brisbane casino resort, and is promoted by the Destination Brisbane Consortium (DBC) split 50:50 between Star Entertainment and the two Hong Kong investors. The latter each also hold a 4.99-percent stake in Star Entertainment.
On Friday morning Australia time, Star Entertainment had told the Australian Securities Exchange in a fiing titled “Response to media speculation – DBC” no deal had “to date” been made between it and its joint venture partners.
In its subsequent Friday filing in Hong Kong, Far East Consortium said under the heads of agreement reached with Chow Tai Fook Enterprises and Star Entertainment, the casino operator would dispose of its 50-percent “stapled equity interest” in the Queen’s Wharf Brisbane project, either by way of buyback or capital reduction, or “other means” as agreed amongst the parties.
Far East Consortium and Chow Tai Fook Enterprises would then jointly own 100 percent of the project.
Under the plan, with effect from March 31, the two Hong Kong investors would also assume all the equity funding obligations in relation to the Queen’s Wharf Brisbane project.
As an asset swap deal that is part of the heads of agreement, Star Entertainment would acquire the two Hong Kong investors’ combined 66.67 percent stapled equity interest in the Gold Coast project.
Under the planned deal, both Far East Consortium and Chow Tai Fook would also pay the Australian casino operator AUD53 million (HKD260.23 million) in cash, payable in several tranches, according to the filing.
