Star Entertainment shares lift after Queen's Wharf interest sale called off
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More news: The Star Entertainment Group’s share price has lifted after the casino operator announced its Hong Kong-based joint venture partners Chow Tai Fook and Far East Consortium issued a termination notice on plans to buy The Star's interest in the Queen's Wharf project.
Shares in The Star had increased 1.4% to $0.15 at 11:05am AEST.
Chow Tai Fook, Far East Consortium back out of $53m Queen's Wharf deal with Star
The news: Hong Kong-based Chow Tai Fook Enterprises and Far East Consortium are seeking to terminate plans to buy out The Star Entertainment Group’s stake in their joint venture to develop the Queen's Wharf Brisbane casino project for $53 million in cash.
The context: The deal will terminate on 7 July if the notice sent by the Hong Kong-based joint venture partners to The Star is not withdrawn.
The termination notice has been sent a week after The Star's stakeholders voted in favour of a $300 million strategic investment by US gaming giant Bally's Corporation and pub billionaire Bruce Mathieson's Investment Holdings.
The Star told the exchange that it remains willing to continue negotiations.
A binding heads of agreement had been signed, announced on 7 March, for the Hong Kong-based joint venture partners to acquire Star’s interest in the Destination Brisbane Consortium.
Long form documents between Star and the joint venture partners for the transaction were required to be entered into by 30 April. As this did not take place both parties were entitled to terminate the deal by providing five business days’ written notice.
The two parties had continued to negotiate with a view to finalising the long form documents since Star’s annual general meeting on 25 June “but have not reached an agreement on the outstanding commercial issues”, according to a statement to the exchange.
The source: ASX
