Star Entertainment: Takeover by gaming giant Bally’s official
Star Entertainment has made a takeover offer from the US gaming group Bally’s of AUD 300 million (approx. 180 million euros) was accepted yesterday [Link to English]. The offer was Star Entertainment's last chance to save the company Bally’s with its March 10, 2025 offer was considered the last remaining bidder.
Last week Negotiations over a possible refinancing offer of AUD 940 million (approx. 565 million euros) failed. [Link to English] from the Australian investment management company Salter Brothers from Melbourne.
By tomorrow, Star Entertainment will receive its first payment of A$100 million (approximately NZ$ 60 million) from Bally's, which does not require shareholder approval. This payment is converted into approximately 15% of the company's shares. The promissory notes for Bally’s are valid until July 2, 2029 and will earn the gaming company 9% interest.
In addition, Bally's will receive promissory notes worth 66.6 million AUD (approx. 40 million euros), which cannot be exchanged for shares and only have to be repaid later.
The takeover of Star Entertainment by Bally's has already been reported in the Australian media {video on English]:
Suspension from the stock exchange deals Star Entertainment a financial blow
Star Entertainment was suspended and suspended from trading by the Australian Stock Exchange at the end of November 2024. The gaming group had previously failed to file a financial report with the Australian Securities Exchange (ASX) on time.
Furthermore, the Bell Report appeared from Australian lawyer Adam Bell [Link to English], a shocking investigative report on Star Entertainment.
The Bell report identified fraud by employees, fake records to fake player protection measures and a software error with a loss of around AUD 3 million (approx. 1.9 million euros). The Bell Report also uncovered violations of legally required breaks for players in Star Entertainment casinos.
Bally’s plans to transfer an additional AUD 200 million by October 7, 2025 at the latest
Bally’s plans to transfer the remaining AUD 200 million (approx. 120 million euros) to Star Entertainment at a later date. However, this requires the approval of shareholders and the authoritiesigt. However, Bally's could also transfer the sum in two parts of AUD 100 million (approx. 60 million euros) each, provided approval has not been received by October 7th.
Overall, Bally's could then take over up to 56.7% of Star, which is more than the 50.1% originally agreed.
Bally's plans shareholder meeting to vote on payment to Star Entertainment
Bally's is also planning a shareholder meeting in July to vote on the second payment to Star Entertainment. The board of directors intends to recommend that the shareholders approve the payment. Bally’s CEO Soo Kim commented on this:
This transaction gives Bally's the opportunity to provide The Star with what it needs to become Australia's premier venue again. And it allows Star shareholders to participate in what we believe will be a better future. – Soo Kim, CEO of Bally’s, iGB
Bally's President George Papanier also added that the gaming group was pleased to bring its knowledge and good reputation to the Australian market.
With Bally's offer, Star Entertainment seized the last chance to save the company and avoid bankruptcy.
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- Star Entertainment Accepts A$300 Million Takeover Offer From Bally's