The Star Entertainment Group has received a funding proposal from Bally’s Corporation, offering A$250 million in capital. Bally’s funding proposal also includes a potential partnership to support The Star’s turnaround. The Star’s board will review the offer, but there is no certainty it will proceed.

  • Bally’s Corporation proposes a fully funded A$250 million capital raise for The Star. The funding would be in the form of convertible notes, which could convert into at least 50.1% of The Star’s fully diluted ordinary shares. Bally’s would underwrite the entire amount but is open to allowing existing shareholders to participate on a pro-rata basis.

  • Bally’s is open to discussing a larger transaction depending on The Star’s liquidity and capital needs. The company is also willing to explore alternative deal structures. These structures would aim to preserve value for regulators, creditors, shareholders, and employees.

  • The proposal is fully funded, with no financing contingencies. As of December 31, 2024, Bally’s had US$171 million in cash and access to a US$620 million revolving credit facility. The company states it has ample liquidity to complete the transaction quickly.

  • Beyond capital, Bally’s offers operational expertise to help turn around The Star’s business. The company highlights its experience in improving more than 20 casino assets globally over 15 years. Bally’s is prepared to invest significant time and resources to restore The Star’s profitability.

  • Bally’s is confident it can pass the regulatory review efficiently. The company has a long history of operating in highly regulated markets such as Nevada, New Jersey, and the UK. Bally’s expects to collaborate with The Star’s Special Master throughout the approval process.

  • The proposal emphasizes maintaining The Star’s existing businesses, assets, and platforms. Bally’s believes this strategy will create a stronger and more sustainable business over time. The company argues that its offer provides greater value and flexibility compared to The Star’s recently announced transactions.

  • Bally’s has already conducted due diligence based on public data and its knowledge of the Australian gaming market. The company is prepared to submit a binding offer quickly. Bally’s also seeks to engage with The Star’s key stakeholders to ensure alignment on the proposed transaction.

Find more news here www.ogqnews.com/category/news/ and find the OGQ Data Magazine via www.quarterly.og-q.com