The casino operator’s shares are expected to go into a trading halt as its board provides a formal announcement on the company’s future.
The casino operator’s shares are expected to go into a trading halt as its board provides a formal announcement on the company’s future.
By Supratim Adhikari and Colin Kruger
March 2, 2025 — 6.00pm
Star Entertainment’s board remains locked in talks to ensure that it can protect more than 8000 jobs on the line, with the company running out of time and money to keep its casinos open.
Star’s shares are expected to go into trading halt on Monday, with a formal announcement due on the company’s future. They closed more than 15 per cent weaker on Friday at 11¢, valuing the company at $315 million. Star was once valued at $5 billion.
The casino operator, which failed to deliver its latest accounts on Friday, is staring down the barrel of a voluntary administration. Star’s board said it was considering last-minute “proposals” to stay afloat.
Star said on Friday that any proposal would need to be large enough to keep Star afloat and carry a realistic chance of materialising before its board could approve the first-half results.
The final decision on Star’s fate, which could be officially released as early as Monday, will largely be decided by Star’s creditors. Star’s management is working to convince a syndicate of bank lenders – Macquarie, Westpac, Deutsche Bank, Washington H Soul Pattinson and Barclays – to either accept a sale of its assets, valued at around $800 million, or refinance their collective debt of $430 million.
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In February, Star said it had received an $650 million offer from US alternative asset manager Oaktree Capital to refinance its debt. However, the proposal was laced with conditions, including the approval of NSW and Queensland governments and regulators, and a satisfactory settlement with existing lenders.
Star also told investors it had received overtures from its Chinese partners – Chow Tai Fook Enterprises Limited and Far East Consortium International Limited – to pick up a 50 per cent stake in the company’s Queen’s Wharf casino in Brisbane.
Meanwhile, Star’s largest shareholder and legendary hotelier Bruce Mathieson had also previously pitched two offers for the company’s Gold Coast casino.
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Star has been embroiled in crisis since reports by this masthead sparked regulatory probe into the company’s flagship Sydney casino in 2022 found it had lax anti-money laundering controls, allowed patrons to flout China’s capital rules and encouraged problem gamblers to bet.
A second inquiry last year uncovered several additional license breaches, including falsifying records. The casino has been overseen by a government-appointed manager since the 2022 report.
Apart from the higher regulatory costs following a run of scandals, Star’s fortunes have also been hurt by poor gaming turnover at its casinos and the move to cashless gaming in NSW, with Queensland to follow.
Most Star employees are based in Sydney, and despite recent troubles, its Pyrmont site remains a major tourism destination, with 650 hotel rooms and 36 food and beverage venues. Any closure would severely affect neighbouring businesses.
NSW and Queensland governments said on Friday that their main concern was to ensure that the jobs at Star’s facilities were protected.
The NSW government said it was watching developments closely including the impact on jobs guarantees for staff.
“Star has to maintain itself as a viable casino … we’re obviously been working with them over a period of time on a range of issues including the importance of the employment that is there and will continue to do so,” senior minister Penny Sharpe said.
Meanwhile, Queensland Premier David Crisafulli said he wasn’t commenting on the financial viability of Star.
“My non-negotiable is that place has got to stay open,” he said. “If whoever runs it in the future wants to talk to us about what future opportunities look like it … it is about the workers.”
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Supratim Adhikari is a technology and business journalist with digital experience. Stints at Business Spectator, The Australian.
Better than average cook, pretty handy with knives and guitar.
Colin Kruger is a senior business reporter for the Sydney Morning Herald and The Age.
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