Australia's Star Entertainment plunges on Brisbane casino deal uncertainty

Far East Consortium International

01/08/2025 05:04

Updates

** Shares of Star Entertainment SGR.AX down 15.5% at A$0.093, as of 0356 GMT

** Earlier fell as much as 17.3% to record low of A$0.091, marking biggest intraday pct loss since Feb 28

** Casino operator reviewing options to sell 50% stake in Brisbane's new Queen's Wharf casino and hotel complex after Chow Tai Fook Enterprises and Far East Consortium 0035.HK declined to extend deadline

** SGR must now repay A$10 million ($6.44 million) by Aug 6 to the two companies after deal fails

** "Star's cash flow continues to wither and the back-and-forth over commitments only muddies the picture further," said John Lockton, head of investment strategy, MST Financial

** YTD, SGR down 50.5%

($1 = 1.5538 Australian dollars)

 (Reporting by Nichiket Sunil & Rajasik Mukherjee in Bengaluru)

 ((Nichiket.Sunil@thomsonreuters.com))