Star Entertainment Completes Event Centre Divestment

The Star Entertainment Group (SGR) has finalized the divestment of The Star Sydney Event Centre assets to Foundation Theatres for $60 million. All necessary regulatory approvals, including from the NSW Independent Casino Commission (NICC), have been secured. The $60 million exclusivity fee, previously held in escrow, has now been released to The Star as consideration for the disposal. However, the NICC has stipulated conditions regarding the transaction proceeds. Specifically, $58.1 million of the proceeds must be held in escrow and can only be released with the NICC’s consent. The full amount is slated for release the day after shareholder approval is obtained for the proposed $300 million strategic investment from Bally’s Corporation. This shareholder meeting is anticipated to occur around late June 2025. If shareholder approval isn’t secured, The Star can request the release of escrowed funds, contingent on meeting specific financial viability conditions. The divestment and the conditions attached to the proceeds reflect The Star’s ongoing efforts to improve its financial position amidst regulatory scrutiny and strategic realignments.