Star Entertainment revives bid to sell 50% stake in Brisbane resort, AFR reports

(Reuters) -Australia’s Star Entertainment has restarted efforts to sell its 50% interest in the A$3.6 billion ($2.35 billion) Brisbane resort, striking an agreement with its Hong Kong-based investors, the Australian Financial Review reported on Tuesday.

The planned stake sale collapsed earlier this month after investors Far East Consortium and Chow Tai Fook Enterprises — both already seeking to exit the joint venture — declined to extend negotiations.

The failure made Star, which is already on the brink of bankruptcy following a string of regulatory probes over the past two years, liable to repay a total of A$41 million to the investors before September 5.

Trading in Star’s shares was halted by the exchange operator prior to the beginning of trade.

Chow Tai Fook and Far East each hold a 2.8% stake in Star. The Australian gaming company first announced plans for the 50% stake sale in Brisbane’s new Queen’s Wharf casino and hotel complex in March.

Star Entertainment did not immediately respond to a Reuters request for comment.

Queen’s Wharf, the newest of the company’s three precincts alongside Sydney and the Gold Coast, was developed with backing from its Hong Kong-based shareholders.

($1 = 1.5349 Australian dollars)

(Reporting by Rishav Chatterjee in Bengaluru; Editing by Alan Barona)