The Star Entertainment Extends Deadline for DBC Exit Agreement
The Star Entertainment Extends DBC Exit Deadline
The Australian gaming and hospitality leader, The Star Entertainment Group Limited, has announced an extension to the deadline concerning its planned exit from the Destination Brisbane Consortium (DBC). This update was shared via the Australian Stock Exchange.
Agreement with Joint Venture Partners
The Star reached a new agreement with its joint venture partners, Chow Tai Fook Enterprises Limited and Far East Consortium International Limited, to prolong the termination date of their previous heads of agreement (HoA).
Initial Attempt to Exit DBC
Earlier this year, The Star aimed to divest its equity stake in the Destination Brisbane Consortium. However, the conditions outlined in the binding heads of agreement with its partners were not fulfilled, leading the partners to seek termination of the deal.
By the end of June, the joint venture partners formally issued a notice to terminate the HoA, which was set to take effect within five days unless revoked. Despite this, The Star reaffirmed its intention to continue discussions with its partners to find a resolution.
Updated Deadline and Continued Negotiations
On July 7, The Star provided an update about the HoA and the proposed sale of its stakes not only in DBC but also in the Destination Gold Coast Consortium (DGCC) and other assets. The partners agreed to some changes compared to the original agreement.
“The parties have agreed on principles allowing for certain departures from the HoA, enabling them to progress negotiations towards finalizing detailed documentation,” stated The Star.
This agreement extended the termination date to July 31, 2025, keeping the original provisions active while negotiations continue to conclude the exit terms and finalize the agreements.
New Financial Responsibilities for The Star
The latest update also highlighted that if the agreed documents are not finalized by the extended deadline, The Star will have new financial obligations. This includes repaying AUD 10 million of proceeds previously received from its partners.
Additionally, The Star will need to cover its share of equity contributions made by the joint venture partners to DBC since March 31, 2025, which is estimated to be around AUD 26.5 million.
The company has pledged to keep stakeholders informed with upcoming updates.
Additional Challenges Facing The Star
Amid these negotiations, The Star is also dealing with other pressures. Bally’s Corporation, a US casino operator, has expressed significant concerns over its plan to assist The Star financially. Bally’s warned it might withdraw support should Australian regulators impose a substantial fine on The Star.
Furthermore, employees at The Star’s Brisbane casino staged a two-hour work stoppage recently, protesting inadequate pay and working conditions.