Star Entertainment shares climb on asset sale amid cash crunch

Published 29/01/2025, 04:14
© Reuters

Investing.com-- Shares of Star Entertainment Group Ltd (ASX:SGR) climbed on Wednesday after the company announced the sale of its Star Sydney Event Centre for A$60 million ($37.51 million), a move aimed at strengthening its financial position amid ongoing liquidity challenges.

The transaction, which involves selling the venue to Foundation Theatres, is expected to convert the space into a Broadway-style theatre with a seating capacity of 1,550. The new facility is anticipated to enhance foot traffic to the casino, benefiting Star’s overall operations.

Star shares rose as much as 13% to A$0.13 in early trade and were 4.5% higher as of 03:12 GMT.

The Australian casino company, grappling with financial strain, had reported cash reserves of A$79 million at the end of December, having spent over A$100 million in the last quarter.

To bolster its balance sheet, the company has been divesting assets, including the recent A$67.5 million sale of the Treasury Casino (EPA:CASP) leasehold in Brisbane. Further asset sales, including hotel properties in Sydney and on the Gold Coast, are under consideration.

The company is also contending with regulatory scrutiny.

"We continue to work on a number of other potential non-core asset transactions." CEO Steve McCann said in a statement.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.