The Star agrees US$180.2m deal with Bally’s Corporation

A shareholder meeting to approve the transaction will be held in June.

Australia.- The Star Entertainment Group has announced a binding agreement with Bally’s Corporation for a AU$300m (US$180.2m) investment. The deal is subject to a shareholder vote expected to take place in late June.

Under the terms of the agreement, Bally’s would provide the funding through a combination of convertible notes and subordinated debt in two tranches. The first tranche, totalling AU$100m, is expected on or before April 9, pending consent. The remainder would be paid following a vote by shareholders and receipt of regulatory approval.

If the deal is approved, it would result in the conversion of notes representing 56.7 per cent of The Star’s issued capital on a fully diluted basis. The notes will be priced at 8 cents per share, subject to standard adjustments.

The coupon rate stands at 9 per cent per annum, compounding and payable quarterly in arrears. The maturity date is July 2, 2029.

The company said it is still in talks with its largest shareholder, Investment Holdings, which may subscribe up to AU$100m. If this occurs, Bally’s investment would be reduced to AU$200m.

The casino operator said: “The board of The Star intends to unanimously recommend that The Star shareholders vote in favour of the transaction, in the absence of a superior proposal and subject to an independent expert concluding (and continuing to conclude) that the transaction is in the best interests of The Star’s shareholders. Each director of The Star intends to vote all of The Star shares that he or she holds or controls in favour of the transaction, subject to those same qualifications.

“A booklet containing information relating to the transaction, reasons for The Star directors’ recommendation, an independent expert’s report and details of the shareholder meeting will be prepared and provided to the Australian Securities and Investments Commission for review, and subsequently sent to The Star shareholders in due course.

“The Star is targeting to dispatch a booklet in late May 2025 to shareholders. Shareholders will have the opportunity to vote on the transaction at a shareholder meeting, which The Star is currently targeting to hold in late June 2025. Separately, the directors are currently finalising The Star’s financial accounts for the period ended December 31, 2024, and intend to lodge those accounts with ASX as soon as possible.”

The Star Gold Coast licence suspension deferred

The Queensland government deferred the suspension of The Star Gold Coast’s casino licence until September 30 to allow consideration of its remediation action. The appointment of the casino’s special manager has been extended to the same date.

Meanwhile, in New South Wales, special advisor Nick Weeks will continue to have oversight of The Star Sydney casino operations until September 30. NICC chief commissioner, Philip Crawford said submissions demonstrated steady improvements in The Star’s remediation, but uncertainty around The Star’s financial situation meant that progress was slow.

See also: The Star refinancing proposal withdrawn