The Star Entertainment Group has announced that Dave Whimpey will take the role of Chief Operating Officer and interim Chief Executive Officer as part of a restructuring...
Star escapes casino exit threat with last-minute deal
Star Entertainment has secured a last-minute extension of the deal involving its Queen’s Wharf Brisbane project after Hong Kong-based Chow Tai Fook Enterprises and Far East Consortium had threatened to walk away from the 50% stake purchase agreement.
Recently, Chow Tai Fook Enterprises and Far East Consortium sent an official notice to Star Entertainment about the termination of the agreement, giving Star just five business days to meet certain conditions.
However, the parties agreed to continue the talks and extend the deadline to July 31, right at the last minute of the initial deadline. Star said they reached a new understanding that slightly changes the original terms and conditions to allow more time to finalize paperwork.
Far East Consortium released a statement:
“Matters principally relating to the orderly transition of the management of the Queen’s Wharf project, to ensure certainty for the JV partners and other relevant stakeholders in facilitating the exit of The Star from the equity and management of the project.”
The Queen’s Wharf development is a massive casino and hotel project in Brisbane. Both Hong Kong companies already own 25% each, with Star holding the remaining 50%.
Despite the temporary deal, risks remain. If the agreement falls through, Star must repay the A$10 million it received earlier this year and cover its partners’ share of investments in the project since March 31.
Star’s shares dropped nearly 4% just weeks after shareholders approved a A$300 million rescue plan from the U.S. casino giant Bally’s and the Star’s largest shareholder, the Mathieson family.
For now, Star Entertainment is under pressure to finalize the deal before the new July deadline.
Star’s former CEO, Matthias Bekier, and former lawyer Paula Martin were found to have breached their directors’ duties during the money laundering scandal in Australia.
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