Star Entertainment shares surge on divestment
Make us a preferred source
Make us a preferred source on Google
More news: Star Entertainment shares surged after it announced it would divest The Star Sydney Event Centre, and other spaces within The Star Sydney complex, to Foundation Theatres for $60 million.
Its shares were up 8.7% to $0.12 and over the last 12 months has plummeted 75.96%.
Star Entertainment to divest Sydney casino assets for $60m
The news: Casino operator Star Entertainment has agreed to divest The Star Sydney Event Centre, and other spaces within The Star Sydney complex, to Foundation Theatres for $60 million.
The context: Foundation Theatres, which owns and operates the Capitol Theatre and Sydney Lyric Theatre, will pay a $60 million exclusivity fee before 31 January.
Upon completion of the transaction, the amount will be held in Star's disposal proceeds account, established under the terms of the group's debt facility, and will constitute restricted cash.
Completion of the deal, which remains subject finalisation of long-form documents and customary conditions, is currently targeted for 28 February.
Star previously warned that it is continuing to explore liquidity solutions amid ongoing financial challenges.
What they said: "The Star has worked closely with the team at Foundation Theatres since they acquired the sublease for the Sydney Lyric in 2011," said Star CEO Steve McCann.
"We are pleased to partner with them as part of the continued evolution of our broad entertainment offerings at The Star Sydney.
"We continue to work on a number of other potential non-core asset transactions."
The source: ASX announcement
