Bally's Takes the Gaming Crown, Shakes Up Star Entertainment
Competitor Bally dives into the fray as gaming companies wage war over Star Entertainment's ownership
In a bold, last-minute move, American gambling juggernaut Bally's Corp strides onto the Australian gaming scene, aiming to seize control of the ailing Star Entertainment Group for a whopping AU$300 million. Just days after Star struck a deal with its Hong Kong partners to dodge collapse, Bally's throws its hat into the ring with an enticing offer.
The Big Gamble
If Star accepts Bally's deal, the US powerhouse would snag a majority stake in the casino empire, investing AU$158 million for a generous 50.1% share. However, Bally's isn't shy about rolling the dice and discussing a more substantial transaction, pending discussions about Star's financial standing and necessities.
Bally's Chairman Soo Kim dropped a letter to Star, proposing a AU$158 million funding package backed by Bally's itself for a controlling 50.1% stake in Star's shares. With a hint of confidence, Kim threatened, "Bally's long-term funding and operational expertise will unlock the best alternative for Star and its shareholders."
Raising the Stakes
Star finds itself in dire straits, desperately seeking a lifeline since February. On Friday, the embattled group agreed to offload its 50% stake in Brisbane Queen's Wharf integrated resort casino to Far East Consortium International and Chow Tai Fook Enterprises (CTFE) for AU$53 million. CTFE's intervention rescued Star from collapse, but Queensland regulators may raise eyebrows over handing control of the Brisbane IRC to CTFE, given its previous ties to the notorious junket king Alvin Chau's Suncity Group.
Meanwhile, Bally's proposition presents an alluring alternative, with the potential to bypass any potential red flags tied to Alvin Chau. The Australian Broadcasting Corporation cautions that the Hong Kong-offered rescue deal doesn't guarantee Star's survival just yet.
The Bet's On
Opal Capital Management's Omkar Joshi expressed enthusiasm over Bally's entrance, asserting it provides vital options for Star to avoid administration. However, Joshi advises that Star's executives must carefully consider the business plans and weigh potential new offers that the Bally's proposition could inspire. As of now, it remains uncertain whether Star will progress with the Bally's deal.
The Australian Securities Exchange has temporarily halted trading in Star shares for over a week. The gaming world watches eagerly, as Bally's moves to shake up the Australian scene and take a commanding lead in the high-stakes game of casino ownership.
In a tactical move, Bally's Corp offers a AU$158 million funding package to gain a controlling 50.1% stake in Star Entertainment Group, thereby potentially providing an alluring alternative to the Hong Kong rescue deal. Bally's Chairman, Soo Kim, confidently suggests that their long-term funding and operational expertise could offer the best alternative for Star and its shareholders.
The Bally's proposition bypasses any potential red flags tied to the notorious junket king Alvin Chau, as Star has agreed to offload its stake in Brisbane's integrated resort casino to Far East Consortium International and Chow Tai Fook Enterprises (CTFE), despite Queensland regulators' scrutiny.
The fate of the Star Entertainment Group hangs in the balance, as the Australia Securities Exchange temporarily halts trading in Star shares, and the gaming world waits to see if Star will progress with the Bally's deal, adding more competition to the high-stakes game of casino ownership.
