Star Entertainment Group has confirmed interest from several parties regarding a takeover bid, including the Hard Rock Hotels & Casinos.
The cash-strapped Australian gambling company said on Monday (May 20) that they had received a number of “unsolicited, preliminary and non-binding” approaches.
Reports of the US-based casino operator’s interest sent share prices soaring approximately 20% during morning trading in Sydney. A consortium led by Hard Rock aims to re-brand Star Entertainment if a takeover bid is successful.
Star Entertainment Group
Furthermore, Hard Rock would put less emphasis on generating larger casino revenues. Instead, they would focus more on entertainment such as live music, shows and hotels.
Star Entertainment has come out and explained that Hard Rock’s interest is genuine. However, no official or formal approach has been made yet.
“The company has received inbound interest from a number of other external parties regarding potential transactions. This includes a consortium of investors which includes the entity Hard Rock Hotels & Resorts Pacific, which Star understands is a local partner of Hard Rock,” Star said.
In recent times, Star Entertainment has had some well documented problems and scandals to navigate. They have endured investigations into money laundering and criminal activity.
Also, they had their Sydney casino license suspended in 2022. Those who follow the latest news surrounding Star Entertainment will recall the implications of the Bell Report.
The company did go on to implement 22 of the 30 recommended measures from the report to fall in line with industry practises. Culture amongst staff and the hierarchy has also fallen under the limelight.
Hard Rock’s reported interest would provide a much-needed financial boost to the Star Entertainment Group. Meanwhile, Hard Rock confirmed in mid-May that it will shut down the iconic Mirage Hotel and Casino in Las Vegas.
Three years of renovations will see the venue be re-branded and re-opened as Hard Rock Vegas. Consequently, the standout feature will be the 700ft hotel which will be shaped into a guitar.
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