A report by the Australian publication Australian Financial Review reveals that negotiations for the deal, in which Bally’s will take control of The Star Entertainment Group in Australia, have made significant progress.
This deal is crucial for the company as it aims to stabilize the operator’s position in Australia. Reports emerged this weekend that the deal is close to being concluded, as The Star seeks to avoid bankruptcy.
Bally’s will provide short-term support to The Star to help the group overcome potential challenges and transition into a new phase of development.
According to reports, the deal is valued at around $300 million, with the process being expedited due to The Star’s current difficulties.
Bally’s has outlined its plans to acquire The Star to strengthen the company’s position in the casino market and leverage its expertise to help develop the group.
Soo Kim, Chairman of Bally’s, noted:“This transaction provides Bally’s the opportunity to infuse The Star with what it needs to regain its position as Australia’s preeminent gaming destination. And it allows The Star shareholders to share in what we confidently believe will be a brighter future together.”
George Papanier, President of Bally’s added: “We are excited to bring our reputation and operating expertise to a wonderful set of properties that operate in fantastic markets. We are up for the challenge.”
After the conversion of the Notes, Bally’s will own up to 56.7% of the fully expanded share capital of The Star, assuming full subscription to the Notes. However, The Star’s major shareholder, Investment Holdings Pty Ltd (controlled by the Mathieson family), may subscribe to a portion of the Notes, which would reduce Bally’s commitment by an equal amount.
The problems at The Star worsened earlier this year when its shares were automatically suspended from trading on the Australian Securities Exchange (ASX) after the casino operator failed to submit its first-half report for the 2025 financial year on time.
The Star received several proposals, including confidential ones, with indicative and non-binding proposals from Chow Tai Fook Enterprises Limited (CTFE) and Far East Consortium International Limited (FEC) seeking to acquire 50% of the group’s interest in its Destination Brisbane Joint Venture, as well as other assets.
However, after reviewing the CTFE and FEC proposals, The Star stated that “none of the proposals provided sufficient value for The Star,” adding that while talks with these companies are ongoing, there is no certainty that a deal will be concluded. The company also disclosed information about a debt financing proposal it is considering from funds associated with the global asset management firm, Oaktree Capital Management.
Don’t forget to subscribe to our Telegram channel!
