Bally’s Corporation, a major American casino operator, has approached Star Entertainment with a proposal to potentially acquire the Australian company, signaling a challenge to Star’s existing rescue deal with two Hong Kong-based investors. In a letter to Star’s chairwoman, Anne Ward, Bally’s CEO Soo Kim expressed openness to discussing a broader transaction, contingent on assessing Star’s immediate liquidity and long-term capital requirements. Kim emphasized a willingness to explore alternative deal structures to preserve value for all stakeholders, including regulators, creditors, shareholders, and employees.
The move follows reports from the *Australian Financial Review* in February, detailing Bally’s representatives’ visit to Star’s casinos and meetings with key shareholders and lenders. Bally’s, which operates 19 casinos across 11 U.S. states, seemingly sees strategic value in acquiring Star Entertainment, a major player in the Australian casino market. The potential takeover bid introduces a new layer of complexity to Star’s financial restructuring efforts, potentially forcing Star to weigh competing offers and navigate regulatory considerations in both Australia and the United States.
