The proposed AU$300 million (£160 million) deal includes a AU$250 million (£133 million) capital injection from Bally’s and an additional AU$50 million (£27 million) from Star’s largest shareholder, Bruce Mathieson.
Star Entertainment Group has reportedly reached a provisional agreement with US-based Bally’s Corporation in a move designed to stabilise the struggling Australian casino operator’s finances.
The proposed AU$300 million (£160 million) deal includes a AU$250 million (£133 million) capital injection from Bally’s and an additional AU$50 million (£27 million) from Star’s largest shareholder, Bruce Mathieson.
Sources familiar with the matter say the proposal has secured support from Star’s board and its lenders. If finalised, the agreement could see Bally’s acquire a controlling 50.1% stake in Star Entertainment—pending regulatory approval. A portion of the funding is expected to be delivered within days to help Star meet immediate financial commitments.
Star’s financial woes worsened earlier this year when CEO Steve McCann revealed the company’s cash reserves had dropped to just AU$79 million ([£42 million]), warning of its inability to finalise its half-year accounts. Previous financing attempts—including bids from Salter Brothers and King Street Capital—failed to materialise.
As part of its restructuring efforts, Star is also divesting its 50% stake in the Brisbane Queen’s Wharf development, selling it to joint venture partners Chow Tai Fook Enterprises and Far East Consortium for AU$50 million ([£27 million]) in cash and hotel-related interests.
Bally’s, which operates 19 casinos across the US, has expressed a commitment to support Star’s properties in Sydney, Brisbane, and the Gold Coast. Chairman Soo Kim said the company could offer “operational expertise and a long-term strategic partnership” to aid Star’s recovery.
Subject to regulatory clearance, the deal represents a potential turning point for Star Entertainment as it grapples with legal challenges and a continued decline in international gaming revenues.