Bally’s Corp receives probity clearance for Star Entertainment takeover
The regulators found that Bally’s met the integrity and financial stability standards.
Australia.- US-based casino operator Bally’s Corp has secured probity clearance from New South Wales and Queensland gaming regulators for its proposed takeover of The Star Entertainment Group. The NSW Independent Casino Commission (NICC) says the company and key associates met integrity and financial stability standards.
Star Entertainment’s shareholders approved a AUD300m (US$193.5m) rescue plan led by Bally’s, with Star’s current largest shareholder, Investment Holdings to contribute AUD100m (US$64.4m). Regulatory approvals will allow Bally’s and Investment Holdings to convert their AUD300m investment into equity and appoint nominee directors to the board.
The company expects the deal to be finalided in the coming days, with further details to be shared at its annual general meeting on November 25. Star Entertainment’s chairman, Anne Ward, said: “This is a critical step in The Star’s progress towards a return to suitability and financial stability,” “We look forward to working with both Bally’s and Investment Holdings to facilitate an orderly transition and to provide a pathway for a successful future for The Star.”
As a condition for the approval in New South Wales, Bally’s will be required to regularly report back on its plan to improve The Star Entertainment’s financial performance, which was submitted as part of its application to the NICC.
