The Star Entertainment Group has confirmed that a consortium of investors, involving a partner of Hard Rock, has approached the company with a financial proposal.
The Australian casino operator was responding to media reports from the Financial Review claiming that Hard Rock Hotels and Casinos is considering taking control of The Star by pumping capital into the group.
The report said The Star would be “rebranded” and its properties would be “separated from the casino operator,” while also making them “less reliant on casino revenue and focused on live music, food and beverages and hotels.”
In response, The Star said it has not received a proposal “directly” from Hard Rock Hotels and Casinos but said it has received interest from “a number of other external parties” including a consortium which includes Hard Rock Hotels & Resorts (Pacific), which The Star noted was a “local partner” of Hard Rock.
“At this stage, none of the approaches has resulted in substantive discussions,” the company said, adding that the nature of the interest to date has been “confidential, unsolicited, preliminary and non-binding.”
The reported proposal would be aimed at revitalising The Star’s fortunes, as current and former executives continue to give evidence at the New South Wales inquiry into a series of alleged failings at its properties in the Australian state.
The Star has also had the suspension of its licence in Queensland extended until the end of the year, with the state’s government keen to assess the outcome of the New South Wales hearing before making a decision on its Queensland future.
