Embattled casino operator Star is in talks with two Hong Kong-based entities to sell its stake in the firm's new flagship entertainment precinct - but so far it's not impressed.
The Star Entertainment Group on Monday said it had received offers to buy its 50 per cent share in the Queen's Wharf complex in Brisbane, which opened in August last year.
The cash-strapped Star has a stake in the joint venture behind the integrated resort, which it operates alongside casinos in Sydney and on the Gold Coast.
The Star said in January it was working on selling several non-core assets after it offloaded its event centre at the Sydney casino for $60 million.
The company has been battling a cash crunch that threatens to push it into insolvency as its revenues continue to slide.
Offers were received from Chow Tai Fook Enterprises and Far East Consortium International, but so far their overtures had been rejected, The Star said in an update to the Australian stock exchange.
The Hong Kong-based proposals were assessed, and the board "after careful consideration (which has included external advice) concluded that none of the proposals have provided sufficient value for The Star".
Nevertheless, it continues to assess whether a sale of its interest in the precinct, which opened in August 2024, "can be negotiated on terms satisfactory to The Star".
"There is no certainty that any transaction will be concluded," it added.
Talks with the two suitors - the other shareholders in the Queen's Wharf complex - reportedly stalled over a failure to agree on the fee payable to The Star to manage the precinct's casino. The Star did not immediately respond to a request for comment.
Star recently reported an $8 million loss and a 15 per cent fall in revenue to $299 million for the three months to December 31, amid legal troubles and speculation it is looking at options for survival.
The jobs of about 9000 people are directly or indirectly at risk if the casino operator collapses, the Union Workers Union has said, but both the Queensland and NSW governments have rejected a push to intervene.
The Star has been struggling since the fallout from a high-profile money-laundering scandal in 2021 that steered lucrative high rollers away from its casinos.
On Monday, a Federal Court hearing began in Sydney in the case bought by the Australian Securities and Investments Commission against its executives over alleged money laundering breaches.
