The Star addresses US takeover rumours in ASX update

The Star addresses US takeover rumours in ASX update

The Star has responded to rumours that it is to be taken over by US hospitality group Hard Rock Hotels and Casinos.

(Featured Image: The Star, Sydney)

Over the weekend, The Australian Financial Review reported that the US group had engaged KPMG for a buyout pitch to The Star.

Following a brief trading halt this morning, The Star directly addressed the claims in an update to the Australian Securities Exchange (ASX).

It said that the group had not directly been approached by the US hospitality group, but had instead received interested from a consortium of investors which included the local division of Hard Rock Hotels and Casinos.

“The nature of the interest to date has been confidential, unsolicited, preliminary and non-binding … At this stage, none of the approaches resulted in substantive discussions.”

According to the AFR, the proposal would see The Star rebranded and its properties separated from the casino operator.

“If successful, the proposal would transform Star’s properties into entertainment destinations less reliant on casino revenue and focused on live music, food and beverages, and hotels,” the report added.

Hard Rock Hotels and Casinos owns The Mirage in Las Vegas along with tens of other casinos. They have been rumoured as trying to enter the Australian market for quite some time now.

The Star is currently facing a second inquiry into its Sydney casino operation and reported a $2.44 billion loss during FY23. Its CEO and finance chief stepped down in recent months and its license to operate its Sydney casino was suspended in 2022 after it was found to have failed to prevent criminal activity and money laundering.

 

 

 

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