Star Entertainment shares surge 35% on asset sale to Hong Kong investors
Investing.com-- Shares in Australia’s Star Entertainment Group (ASX:SGR) soared 35% on Tuesday after the casino operator revived a deal to sell a 50% stake in its Brisbane assets to a Hong Kong-based consortium.
The binding agreement with Hong Kong-based partners Chow Tai Fook Enterprises (HK:1929) and Far East Consortium (HK:0035), will see Star exit the Queen’s Wharf Brisbane Integrated Resort and consolidate its Gold Coast holdings.
The deal includes an A$53 million ($34.5 million) cash payment and transfers of hotel interests, while releasing Star from 50% of parent company debt guarantees due December 2025.
Sydney-listed shares of the company surged as much as 35% to A$0.12 on Tuesday.
The transaction, split into two stages, is expected to be completed by November 2025 for Brisbane and mid-2026 for Gold Coast assets.
Investors cheered the resolution after earlier negotiations collapsed in August. The company had warned that it could collapse due to tighter rules, fewer tourists, and higher living costs.
