The troubled gambling group confirmed it has received several confidential, indicative and non-binding proposals from Chow Tai Fook Enterprises Limited (CTFE) and Far East Consortium International Limited (FEC), who each already own a quarter of the Brisbane business. Both suitors are seeking to acquire The Star’s 50% interest in Destination Brisbane Joint Venture (DBC), which owns The Star Brisbane, along with other assets.
In an ASX announcement, Star Entertainment said its board has concluded that none of the proposals have provided sufficient value for The Star.
Negotiations will continue, with Star Entertainment noting that it is actively exploring possible liquidity solutions as it seeks to address the dwindling cash reserves outlined in its most recent financial results.
“The Star continues to engage with CTFE and FEC to ascertain whether a sale of The Star’s 50% interest in DBC can be negotiated on terms satisfactory to The Star. There is no certainty that any transaction will be concluded,” Star Entertainment said in the statement.
The Star Brisbane opened its first phase in August 2024, with the rest of the facilities to be completed in 2025.
The Star Brisbane and broader Queen’s Wharf precinct is expected to attract an estimated 1.4 million additional visitors each year. When complete, Queen’s Wharf will deliver an estimated 1,000 premium hotel rooms, more than 50 new food and beverage experiences, world-class entertainment, luxury retail, stunning public artworks, the restoration of nine heritage buildings, 1,500 residential apartments and 12 football fields of public space in the heart of Brisbane’s CBD.
Star’s 2025 kicked off with bad news as the group announced on 8 January that its cash reserves had fallen to AU$79 million (£40 million/€47.4 million/$48.9 million) at the end of 2024. That total includes the first AU$100 million tranche from its new debt facility, which was drawn on 3 December.
Star Entertainment recently sold its Sydney casino’s events space for $40m less than it had previously claimed it was worth.
