Star Entertainment Group has addressed media reports that Hard Rock is leading a consortium of investors exploring a potential takeover of the Australian casino giant.
While the company said in an ASX statement that it has “not received a proposal directly from Hard Rock Hotels and Casinos (Hard Rock),” it did acknowledge inbound interest from “a number of other external parties.” These include a consortium of investors that involve the entity Hard Rock Hotels & Resorts (Pacific), which The Star understands is a local partner of Hard Rock.
“The nature of the interest to date has been confidential, unsolicited, preliminary and non-binding,” the Australian operator said. “At this stage, none of the approaches has resulted in substantive discussions. The Star remains focused on its remediation activities in New South Wales and Queensland and participating in the Bell Two Inquiry.”
The Australian Financial Review broke news that The Star had been approached by a Hard Rock-led consortium of investors, sending its shares 20% higher on Monday. This represented their best session since early March and made them the top gainer on the Australian exchange, which rose 0.6%.
Reports suggested all Star land-based casinos would rebrand under the Hard Rock name. It was also reported that each site would become less reliant on casino revenue and focus more on other aspects such as live music and hotels.
Star’s shares have plummeted in recent times following two inquiries. One is currently ongoing, looking into the company’s suitability to hold a casino license for The Star Sydney. The final report is due on July 31. The company is also looking for a new chairman and a CEO after both resigned earlier this year.
Australian casino operators have been under the lens of regulators over the last few years, with Blackstone-owned Crown Resorts also facing inquiries that exposed a slew of wrongdoings.
Meanwhile, while no official statement has yet been made available, Hard Rock has seemingly shot down the rumors in conversation with Asian media. “Hard Rock is not a member of any group looking to acquire Star, or leading any such initiative,” the firm told IAG.
Original article: https://www.yogonet.com/international/noticias/2024/05/20/72244-the-star-says-hard-rockled-consortium-exploring-potential-takeover-bid
