Bally’s Corporation has offered a fully funded A$250m (US$158m) recapitalisation package that could grant it a 50.1% stake in Australia’s embattled Star Entertainment.
The US-based operator signalled its openness to a larger transaction, aiming to leverage its global expertise to turn around Star’s ailing casino operations.
Star, struggling under mounting debt and regulatory scrutiny, is evaluating multiple rescue proposals to avoid voluntary administration. It recently secured a A$250m bridge loan and is considering a A$940m (US$591m) refinancing deal from an unnamed US investor, alongside a A$650m (US$408m) offer from Oaktree Capital.
It’s stock remains suspended from trading, having missed financial reporting deadlines.
Soo Kim, Bally’s Chairman, has emphasised the company’s willingness to work with existing shareholders, regulators and creditors to stabilise the Australian casino giant.
If approved, the deal would value Star at around A$500m (US$314m), a stark drop from its A$3.5bn (US$2.2bn) valuation in 2021.
Australia’s casino sector continues to struggle following pandemic-related closures, regulatory investigations and rising debt costs. Star previously attempted a takeover of Crown Resorts before the latter was sold to US private equity firm Blackstone for A$8.9bn (US$5.6bn) in 2022.
Bally’s, which operates 19 casinos across 11 US states, sees Star as a strategic turnaround opportunity, reinforcing its global expansion ambitions and Star is expected to announce a decision on Bally’s proposal soon.
