STAR MISSES DEADLINE TO OFFLOAD STAKE IN BRIS CASINO
Star Entertainment Group’s share price plummeted following the collapse of negotiations to sell its 50% stake in Brisbane’s Queen’s Wharf project. The planned $53 million deal with partners Chow Tai Fook and Far East Consortium fell through due to unresolved commercial issues. As a result, Star must return a $10 million advance by next week and another $31 million by September 5.
Despite having $234 million in cash at the end of June, the company is burning through funds at nearly $25 million per month. It also faces potential additional financial commitments to the Queen’s Wharf development, especially as its debt facility expires in December.
Star is under financial strain from escalating development costs, upcoming wagering restrictions in NSW, and a possible $400 million penalty from AUSTRAC over money laundering breaches—an amount the company says could lead to insolvency.
Its share price has fallen dramatically from $3.25 in 2022 to just 9.2 cents.
