The Star Entertainment Group (The Star) has issued a statement informing investors they have entered a lifesaving $300m investment deal with US casino operator Bally’s.
According to Monday’s announcement, Bally’s is set to acquire a 56.7 per cent stake in The Star with the first payment of approximately $100m to be made today to keep the company afloat.
The remaining $200m is subject to a shareholder vote followed by regulatory approvals which may see the money delivered in two lots of $100m by no later than 7 October 2025.
This comes as last week, a proposed long-term funding deal with Salter Brothers could not be finalised.
The statement read: “The Star has continued to work diligently with Salter Brothers Capital in relation to the Refinancing Proposal but has not received a binding debt commitment letter and the Refinancing Proposal has now been withdrawn.”
The group went on to reassure investors that they were continuing to work on refinancing proposals but had “material uncertainty” over the company’s future.
Early last month Bally’s made a late bid to acquire a 50.1 per cent stake in Star Entertainment, while also saying it is “very open to discussing a larger transaction depending on discussions with respect to Star’s liquidity and capital needs.”
At the time, The Star responded to Bally’s proposal through a statement to the ASX, in which chairman Anne Ward said: “The Board of The Star will review Bally’s Proposal. However, there is no certainty that it will be progressed.”
Bally’s is a globally recognised gaming giant, operating 19 casinos across 11 US states, as well as recently purchasing a casino in the UK.
In addition, the Bally’s Interactive International division is a leading global interactive gaming operator with strong market shares in the United Kingdom and Spain.