The Star Entertainment Group (ASX: SGR) has announced an update regarding its binding heads of agreement (HoA) with joint venture partners Chow Tai Fook Enterprises Limited and Far East Consortium International Limited. The Star Entertainment Group owns and operates casinos and entertainment facilities. The announcement follows previous disclosures on March 7, 2025, concerning the HoA, and June 30, 2025, which revealed a notice of termination from the Joint Venture Partners. The HoA pertains to The Star’s ownership interests in the Destination Brisbane Consortium (DBC), Destination Gold Coast Consortium (DGCC), and other related assets.
According to the recent announcement, all parties have agreed on a set of principles that involve certain departures from the original HoA. These principles will now guide ongoing negotiations aimed at finalising long-form documents. To facilitate these discussions, the parties have agreed to extend the HoA termination date to July 31, 2025. This extension ensures the HoA provisions remain in effect while negotiations continue.
Under the extended agreement, The Star will be required to make specific payments to the Joint Venture Partners if the long-form documents are not finalised by the revised termination date. Firstly, The Star must repay $10 million of proceeds received from the Joint Venture Partners within 30 days of today’s date. Secondly, The Star will reimburse the Joint Venture Partners for their share of equity contributions made to DBC since March 31, 2025, estimated to be approximately $26.5 million, payable within 60 days of today’s date.
The Star Entertainment Group has stated it will provide further updates on any material developments concerning the negotiations with its Joint Venture Partners. This includes any significant changes to the HoA that are agreed upon as part of the long-form documents.
