Star Entertainment sent its share price soaring after announcing a deal to rekindle its partnership with Hong Kong-based investors.
The embattled Australian casino company announced on August 12 that it had reached an agreement with Chow Tai Fook Enterprises and Far East Consortium to sell 50% of the Brisbane Queen’s Wharf Casino and hotel venue.
That follows a previous breakdown in the relationship over a number of “outstanding commercial issues,” leading to the heads of agreement (HoA) termination notice taking effect.
It appeared that Star would retain its 50% equity interest in the Destination Brisbane Consortium (DBC) and its 33% equity interest in the Destination Gold Coast Consortium (DGCC), however, that plan is now on the shelf.
The refreshed deal means the Hong Kong joint venture partners will take full ownership of the DBC Queen’s Wharf project, with Star Entertainment gaining outright control of two hotel and residential towers at the Gold Coast resort.
It also relieves Star of certain financial pressures, including AUD 212 million ($138.8m) in equity contributions and guarantees on half of DBC’s AUD 1.4 billion ($917m) debt facility.
The official ASX press release confirmed that “Star has also received the consent of its subordinated lenders Bally’s Corporation and Investment Holdings Pty Ltd to support the Transaction on the basis of the executed terms.”
Star Entertainment will walk away from Brisbane after the Casino operator rescued a deal to pull the company out of financial ruin. https://t.co/VZ3A1cHvFd @LiamBland_ #7NEWS pic.twitter.com/AS6U6k5tXT
— 7NEWS Queensland (@7NewsBrisbane) August 12, 2025
The transaction is subject to regulatory approvals and set to unfold in two stages, with Star exiting Queen’s Wharf by November 30 this year. The second timeline expects asset transfers to be completed by around June 2026.
The rescue brings Star Entertainment back from the brink, once again relieving the company of pending financial pressures and allowing it to service existing debt commitments.
Reuters detailed that “the investors had now agreed to a sale on terms broadly similar to the original proposal,” but it is still unclear why Far East Consortium and Chow Tai Fook returned to the table.
Star Entertainment has won a reprieve, with its shares spiking up 32% by mid-day trading on Tuesday, representing a massive return from the almost record-low prior to the revival announcement.
Image credit: Star Entertainment
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