Chow Tai Fook, Far East Consortium confirm $53m buyout of Queen's Wharf
Make us a preferred source
Make us a preferred source on Google
More news: Hong Kong-based conglomerates Chow Tai Fook Enterprises and Far East Consortium confirmed they have reached an agreement with Star Entertainment, which will see the casino operator exit ownership the Queen's Wharf Brisbane project.
The Star and its current Queen's Wharf employees will continue to manage the casino operations, the two companies said in a statement.
They noted that the agreement delivers "a financially stronger and more simplified ownership structure of Queen's Wharf" and will help The Star to "focus on responding to the challenges ahead".
The agreement is subject to lenders to the Queen's Wharf Brisbane project, as well as government and regulatory approvals.
Chow Tai Fook Enterprises and Far East Consortium will pay The Star $53 million in cash, payable in several tranches, with the first tranche of $25 million due by 7 March.
What they said: A spokesperson for Chow Tai Fook Enterprises and Far East Consortium said: "We are committed to keeping Queens Wharf open, and that employees keep their jobs.
"We acknowledge the impact that recent uncertainty has had on local employees and local small businesses, and we hope that this disruption can now end.
"We will work responsibly and collaboratively with the Queensland Government, Unions and all relevant stakeholders to finish construction and keep Queen's Wharf open, which is in the best interests of employees and local businesses.
"The strategic and commercial rationale for this asset swap is compelling for all parties at this challenging time, which also provides us with greater alignment and helps focuses our resources on our investment in Australia."
Star agrees $50m Queen's Wharf sale: reports
More news: Casino operator Star Entertainment has signed a deal to sell its 50% stake in the new Queen’s Wharf casino and entertainment complex in Brisbane, according to media reports.
The Australian Financial Review and The Australian reported that The Star signed a $50 million deal with Hong Kong’s Chow Tai Fook Enterprises and Far East Consortium today.
The sale of The Star's Brisbane resort would mean the casino can stay open, saving around 3000 jobs. It may also prevent the company from falling into administration.
Star Entertainment confirms talks over Brisbane casino sale
The news: Embattled casino operator Star Entertainment has confirmed recent media speculation that it remains in discussions with Hong Kong-based conglomerates Chow Tai Fook and Far East Consortium over the possible sale of its 50% stake in The Star Brisbane resort.
However, The Star said it has been unable to reach an agreement to date.
The context: The company said on Monday that it is "unlikely" to be in a position to lodge its first-half financial report, "unless, and until, it has secured a refinancing commitment that would enable The Star to refinance all of the group's existing corporate debt, as well as to provide additional liquidity".
Shares in the casino operator were automatically suspended from trading after the company failed to lodge its half-year report before last week's deadline.
The source: ASX
