Star extends deadline for deal to exit Brisbane
The Star Entertainment has reached a revised understanding with Chow Tai Fook Enterprises and Far East Consortium.
Australia.- The Star Entertainment has secured an extension in its negotiations with joint venture partners on its planned exit from Destination Brisbane Consortium (DBC) and Destination Gold Coast Consortium (DGCC). The company said it had reached agreement with Chow Tai Fook Enterprises (CTFE) and Far East Consortium (FEC) on revised terms to progress talks.
Last week, venture partners issued notice to terminate the Heads of Agreement (HoA) due to unresolved commercial issues. The termination was expected to take effect today (July 7) but has been delayed until July 31.
The Star planned to exit from DBC, owner of The Star Brisbane integrated resort, to focus on its Gold Coast operations. Under the planned deal announced in March, the Far East and CTFE were to pay AU$50m (US$31.6m) in cash as well as their 66.7 per cent equity interest in The Star casino on the Gold Coast to The Star. The parties originally set a deadline of April 30 to finalise documentation, but this milestone was not met.
The Star now has until July 31 to progress negotiations and formalise documentation. If the required documentation is not completed by the termination date, The Star will be required to repay AU$10m (US$6.54m) to each partner within 30 days from July 7.
If the amount is not repaid in the required period, The Star will be required to transfer its 33.3 per cent interest in Tower 1.
