The investment by US company Bally’s Corporation and the local Investment Holdings was first announced in April and equates to the two companies gaining a combined stake in the integrated resort operator of more than 50 per cent, should they choose to change the convertible notes that are part of the deal into shares.
Before the deal, Investment Holdings was already The Star’s largest shareholder, effectively owning 10 per cent of the company, meaning around 61 per cent of The Star Entertainment Group is now cleared to be held by two entities.
On Friday, both the NSW Independent Casino Commission (NICC) and the Queensland Attorney-General issued statements advising of the approval of the Bally’s and Investment Holdings investment.
Both the NICC and Queensland’s Office of Liquor and Gaming Regulation (OLGR) have investigated Bally’s and its “key individuals” to determine the suitability of the company to acquire a significant stake in The Star.
With an existing large share of The Star’s ownership, the NICC said it had approved the increase in Investment Holdings’ stake in The Star and that the entity and key people had already been cleared to be associated with the casino operator.
“We are very pleased to have received all regulatory approvals necessary to complete the strategic investment,” said The Star Entertainment Group chair, Anne Ward.
“This is a critical step in The Star’s progress towards a return to suitability and financial stability.
“We look forward to working with each of Bally’s and Investment Holdings to facilitate an orderly transition and to provide a pathway for a successful future for The Star.”
The Star has had a tumultuous year, struggling with an existential lack of cash. Deals that it has made this year as it seeks to shore up its financial position have led to significant changes in its footprint in the business events industry.
Early in the year, it sold off its Event Centre in Sydney to Foundation Theatres and more recently it has made a deal to exit the $3.6 billion Queen’s Wharf development in Brisbane, which includes significant premium and luxury accommodation stock in addition to an Event Centre and hero event spaces in the centre of Brisbane.
However, assumming its Queen’s Wharf divestment deal goes through in full, The Star will increase its presence on the Gold Coast, taking full ownership of The Star Gold Coast.
