Star Entertainment Group gets July extension to finalize deal
The Star Entertainment Group is back in the news, as the Australian gambling firm has agreed to extend its Heads of Agreement to the end of July.
After a buffeting of problems throughout the last few years, the company is desperate to offload its stake in the AUD 4 billion ($2.6 billion) Queen’s Wharf complex to keep itself afloat. If the company cannot finalize negotiations by then, it will be subject to repayments to its partners.
The figures shown by The Star in a press release include an AUD 10 million ($6.5 million) repayment to its partners. On top of this, it must pay back the “shore of equity contributions” that have been paid since 31 March 2025. The Star expects this to cost $26.5 million, and it’ll have 60 days to make this payment.
Australia's Star Entertainment $SGR said it had received a notice from Hong Kong's Far East Consortium International https://t.co/7ivd8RaySQ and Chow Tai Fook Enterprises to terminate the deal to sell its 50% stake in its Queen's Wharf project in Brisbane.
— CommSec (@CommSec) June 30, 2025
It’s been a hectic 2025 for the company, as its various casinos have had to be bailed out to remain open. In April, a AUD 940 million ($611 million) deal fell through, as neither party could come to an agreement based on the requirements of Salter Brothers. That same month, Bally’s, a US company, was overwhelmingly voted in by the shareholders to buy up approximately 56.7% of the embittered company.
Speaking in the ASX announcement last week, The Star said:
“Since the recent general meeting, the parties have continued to negotiate with a view to finalising the long form documents, but, as of this morning, have not reached an agreement on the outstanding commercial issues.”
The Star now has to deal with a strike tooNow, it is also contending with a strike, as workers walked out on July 4. The union-backed workers are pushing for a 6% pay rise, as well as pushing back on proposed cuts to penalty rates (working outside of normal hours, like on weekends or late-night shifts).
A large part of the strike is that if the cuts go through, it would reduce the pay well below the standard rate for those working in similar locations.
Featured image: Pexels, The Star Entertainment Group
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