Star Leisure close to deal to promote Brisbane | Australian Markets
Money-strapped Star Leisure is set to dump its Brisbane on line casino in an Eleventh-hour deal that might rescue it from financial collapse.
Media studies on Thursday mentioned Chow Tai Fook Enterprises and Far East Consortium have been close to agreeing a $50 million loan that may keep the on line casino operator afloat.
Star’s shares have been suspended from trade on the Australian Securities Alternate after it didn’t lodge its half-year outcomes final Friday.
The company mentioned it couldn’t log out on the accounts with out a bailout from a white knight investor to inject much-needed liquidity and warned it could not be capable to stay a going concern.
The Australian Monetary Overview mentioned the 2 Hong Kong-based firms, that are joint traders in Brisbane’s Queen’s Wharf precinct, are set to take control of Star’s on line casino there.
Star has its flagship on line casino in Sydney — the place it has already been pressured to dump sections of the complicated to raise money — and one on the Gold Coast.
Placing its share on maintain final week, Star repeated a warning made early in February that with out a rescue deal to tug in money it could not be capable to proceed as a viable business.
Its shares later returned to trade and fell more than 17 per cent to 11¢, valuing the company at simply $307 million.
Star has for months been desperately looking for a lifeline to remain afloat because it battles a liquidity disaster.
Simply half-hour after pausing trade in its shares — which have misplaced more than 75 per cent of their worth over the previous 12 months — Star launched a assertion saying it was persevering with to discover doable options “that might materially increase the group’s liquidity position”.
It expects to obtain “one or more liquidity proposals during the course of today”.
“It is likely that the 1HFY25 report will only be able to be finalised if the company has received liquidity proposals which, after appropriate consideration by the directors, are sufficiently capable of being progressed to finalisation in the context of determining whether the company can continue as a going concern,” it mentioned.
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