Star may keep Queen's Wharf stake after deal falls through
Beyond gaming, The Star Brisbane features luxury hotels, fine dining, live entertainment, and panoramic views from the iconic Sky Deck, making it the ultimate place for thrill, style, and unforgettable moments. Payment of the sale proceeds were made to participating shareholders on 27 May 2016 in accordance with their payment instructions as recorded on the share register. The Star Entertainment Group announced on 5 April 2016 share sale facilities that provided eligible small shareholders the opportunity to sell their shares without incurring any brokerage or handling costs. Even for those who identify as LGBTQI+, we can still be allies for others within the community.
However, Star’s board had carefully reviewed all proposals, with external advice, and determined that none offered sufficient value. The company said that it will continue its discussions with Chow Fai Fook and Far East Consortium to explore a potential sale of its stake in the Brisbane property on acceptable terms but notes that no transaction is guaranteed. According to corporate information, the Queen’s Wharf Brisbane casino operator “will have an entitlement to 2,500 gaming machines, although not all machines may be installed at opening”.
Star Entertainment needs to show the market it has the funding needed to stabilise its underperforming casino business while also fixing the probity issues that have left the company’s retention of its Sydney casino licence in doubt. Fund manager Perpetual has been another willing backer of Star Entertainment in recent months. Mathieson owns a 9.6 per cent stake but recently received regulatory approvals to acquire up to 20 per cent of Star’s shares. Meanwhile, Perpetual lifted its stake to 8.8 per cent in May but would need regulatory approval to lift its stake above 10 per cent. Mathieson, with an estimated wealth of $2.5 billion, is one of the investors to have backed Star’s previous rounds of capital raising last year, which netted close to $1.5 billion. The casino operator’s business is currently worth just $1.3 billion, based on the last trading price of its stock at 45 cents.Queensland regulators face pressure as CTFE and FEC’s ability to hold a casino license comes under examination. The scrutiny is fueled by historical reports of their executives’ ties to controversial junket figures. Although no formal barriers exist, the inquiry raises some doubts about the operational transition plans. For Star, the stakes are high as discussions on its AU$400 million AML failures penalty continue, which could trigger a collapse and industry-wide liquidity concerns. Once touted as Star’s most prestigious venture, the project’s AU$1 billion budget overrun and AU$1.4 billion debt burden now threaten its viability. Bally’s proposed AU$300 million rescue package underscores the urgency, with chairman Soo Kim positioning his firm as a natural successor to the company’s operations. “We believe no one will be in a better position than ourselves to run these casinos,” Kim explained.
Instead, he is the man in charge of a US gaming giant worth $737 million USD — which is poised to finalise a deal to take control of Star Entertainment and attempt to save it. Star Entertainment will also have to contend with the soon-to-be-implemented cashless gaming cards, which are designed to stop money laundering and address problem gambling on poker machines but will hit the company’s pokie revenues in Sydney. The Queen’s Wharf precinct is a joint venture with Chow Tai Fook Enterprises and Far East Consortium. The next 24 hours will be crucial for the casino operator, which was forced to delay the announcement of its full-year results on Friday.Visitors can try their luck in various classic games such as poker, blackjack, and roulette, as well as enjoy modern electronic games. In 2017, a large-scale renovation and rebranding began, during which Treasury casino was transformed into Star casino Brisbane. This transformation was part of a broader project to develop the Queen’s Wharf entertainment complex, which includes hotels, restaurants, residential complexes, and other infrastructure facilities.
The casino was originally housed in the historic Treasury Building, which was constructed in the 19th century and served as the financial center of the colony. After its transformation into a casino, this building became one of Brisbane’s most recognizable landmarks, blending the heritage of the past with modern innovations. Star casino Brisbane, located in the heart of Queensland’s capital, Australia, is one of the most renowned entertainment complexes in the region.The Queensland government should rule out a takeover of Brisbane's new casino by Chinese investors over organised crime links, gambling reform campaigners say. One percent of the casino's gross gaming revenue was deposited in the Jupiters Casino Community Benefit Fund. This fund supported non-profit community-based groups and is administered by the Government of Queensland. Key for Star was the ability to divest the monetary commitments related to the development, which were said to be hundreds of millions of dollars worth of equity and debt contributions. As part of the agreement, the two partners also relinquished their stakes Blackcoin in another venture, Star Gold Coast, back to Star. The other two partners in the JV, Far East Consortium and Chow Tai Fook Enterprises, bought out Star’s stake in the project for AU$53 million.
American casino giant Bally’s Corporation and the billionaire Mathieson family are waiting on probity approvals to take control of Star, which has faced extreme financial pressure over the past 18 months. Star owns casinos in Brisbane, the Gold Coast and Sydney, and employs thousands of workers. "This will provide both entities with a significant ownership stake and influence over the management of The Star's casino operations in Queensland." Star agreed to the lifeline earlier this year after seeking a financial rescue deal to avoid collapse. With the opening of the new complex, Star casino Brisbane significantly expands its gaming options. Guests will be offered more than 2,000 gaming machines, over 100 gaming tables, including exclusive VIP zones, as well as separate rooms for poker and other table games.