May 20th 2024.
This morning, The Star made an important announcement that it will be halting its trading activities for the time being. This decision came after the company received several bids from interested companies looking to potentially take over the struggling casino operator.
According to the Australian Financial Review, one of the companies that has expressed interest in a takeover is Hard Rock Hotels and Casinos. While Star Entertainment Group confirmed this information, they also mentioned that the proposal from Hard Rock was not directly submitted. However, a local partner was a part of a consortium that also showed interest in acquiring The Star.
In a statement, The Star clarified that they have not yet received a direct proposal from Hard Rock Hotels and Casinos. However, they have received confidential and preliminary interest from a number of other external parties. This includes a consortium of investors that includes Hard Rock Hotels and Resorts, with whom The Star understands to have a local partner. So far, these discussions have been non-binding and have not led to any substantive negotiations.
In response to these reports, The Star went into a trading halt just before 10 am today. The Australian celebrity chef Kylie Kwong also made headlines as she announced the closure of her restaurant. The AFR also reported that Blackstone, the owner of The Star's rival Crown, is also interested in a potential acquisition. However, they have not yet submitted a formal proposal.
The Star is currently under investigation by the NSW Independent Casino Commission for the second time, regarding its suitability to operate the Sydney casino. This comes less than two years after a previous probe that resulted in a hefty fine and a suspended license. The findings of this current investigation are expected to be released by the end of the month and could potentially lead to the revocation of their provisional license.
Aside from its Sydney venue, The Star also operates casinos in Brisbane and the Gold Coast. On the other hand, Hard Rock, based in Florida, has a wide range of hotels, restaurants, and casinos all over the world.
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