Star Entertainment Group’s attempt to exit two joint ventures is back on after the company announced a binding agreement with its JV partners.
The binding long-form documentation agreed with JV partners Chow Tai Fook Enterprises and Far East Consortium International will enable Star Entertainment to dispose of its holdings in the Destination Brisbane Consortium (DBC) and Destination Gold Coast Consortium (DGCC), owners of The Star Brisbane and The Star Gold Coast.
The agreement announced on Tuesday follows last week’s announcement by Star Entertainment that talks between the parties had ended after the parties failed to agree an extension to the deadline by which to finalise long form documentation.
The transaction will see Star Entertainment dispose of its interest in DBC and ultimately transition the management of The Star Brisbane to a replacement operator, and also includes the transfer of other Brisbane assets and interests held by Star Entertainment to the JV partners.
The company said that the key aspects of the transaction are materially consistent with the Heads of Agreement announced in March.
Star Entertainment’s exit of the DBC must complete by the end of November.
The second stage of the transaction involves the transfer of remaining assets, including DGCC and The Treasury Hotel in Brisbane, and is subject to a separate set of conditions which are currently expected to be satisfied during the second half of 2026.
Completion of each stage of the transaction is subject to satisfaction of all required conditions, including receipt of applicable regulatory approvals, approval of accommodations requested by the JV partners from the Queensland State Government, approvals from lenders, amendments to DBC facility documentation, release of The Star’s parent company guarantees in relation to DBC, and other required third-party consents.
The transaction has the approval of Star Entertainment’s subordinated lenders, Bally’s Corporation and Investment Holdings.
Shares in Star Entertainment Group Ltd. (ASX:SGR) gained over 20 per cent on the news in Sydney Tuesday and closed Wednesday unchanged at A$0.11 per share.