Star Entertainment has received a last-minute $250 million cash injection from US casino giant Bally’s Corporation.
The embattled operator, which runs three casinos in Brisbane, Gold Coast and Sydney, is on the brink of collapse with trading on its shares suspended since the end of February.
The offer would give Star $250 million in capital in exchange for Bally’s gaining a 50.1 per cent controlling stake in the company.
On Friday, Star was in negotiations with two of its Hong Kong-based investors to offload its 50 per cent stake in the Brisbane Queen’s Wharf casino development in exchange for a $50 million cash injection that would help it stave off administration.
This offer from Bally’s was presented as an “alternative path” in a letter posted to the ASX by Star today.
“In short, we firmly believe that our approach – as outlined in this letter – of new long-term capital plus operational track record will unlock the best alternative for Star and its shareholders,” Bally’s Chairman Soo Kim wrote in the letter.
The letter went on to say Bally’s strategy would be to keep “Star’s current businesses, platforms and assets in place” and that the company was also open to “discussing a larger transaction”.
The Star said its board is considering the offer, but that it is not guaranteed to be accepted.
The Star employs around about 9000 staff across its venues, including three casinos in Sydney, Brisbane and the Gold Coast.
Bally’s operates 19 casinos across the United States.
