Star DBC sale faces uncertainty as partners exit
The Star Entertainment said it remains willing to continue negotiations with the joint venture partner.
Australia.- The Star Entertainment Group’ sale of its 50 per cent equity interest in the Destination Brisbane Consortium (DBC) is in doubt after venture partners Chow Tai Fook Enterprises and Far East Consortium International issued notice to terminate the Heads of Agreement (HoA) due to unresolved commercial issues. The termination will take effect on July 7 unless withdrawn.
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 Entertainment Group said: “Despite the receipt of this notice, The Star [Entertainment] remains willing to continue negotiations with the joint venture partners to give effect to the DBC transaction.”
It added: “The Star will provide an update when there are further material developments with respect to its negotiations with its joint venture partners, including if any termination of the heads of agreement takes effect.”
The Star confirmed it has received AU$58m from the sale of its Event Centre, alongside AU$133m in funding from Bally’s Corporation and Investment Holdings, following clearance of conditions for release.
