In a surprising turn of events, Star Entertainment Group has announced that a consortium led by Hard Rock International is considering making a bid for the Australian casino operator. This news sent Star Entertainment’s shares soaring, as investors reacted positively to the possibility of a takeover.
The consortium, which also includes Hong Kong-based investment firm Far East Consortium and two Australian investment funds, is reportedly in the early stages of conducting due diligence on Star Entertainment. While no formal bid has been made yet, the potential merger has already caught the attention of industry analysts and market watchers.
If the bid were to go through, it would mark a major shakeup in the Australian gambling market. Star Entertainment operates several popular casinos in Australia, including The Star Sydney, The Star Gold Coast, and The Star Brisbane. Hard Rock International, on the other hand, is known for its iconic rock ‘n’ roll-themed hotel and casino properties worldwide.
The news of the potential bid comes at a time when the global gambling industry is facing significant challenges due to the ongoing COVID-19 pandemic. Many casinos have been forced to close their doors temporarily or operate at reduced capacity, leading to a decline in revenue and profits. A merger between Star Entertainment and Hard Rock International could help both companies weather the storm and emerge stronger in the post-pandemic world.
Shares of Star Entertainment surged by more than 10% following the announcement, reaching their highest level in over a year. Investors are clearly bullish on the prospect of a deal between the two companies, as it could create a powerhouse in the Australian gambling market with the potential for significant revenue growth.
In a statement, Star Entertainment CEO Matt Bekier expressed cautious optimism about the potential bid, saying that the company is open to exploring all options that would create value for shareholders. He also noted that the consortium led by Hard Rock International has a strong track record of successfully operating and expanding casino properties around the world.
As the bidding process unfolds, industry experts will be closely watching to see how the situation develops and whether other potential suitors emerge. A successful merger between Star Entertainment and Hard Rock International could reshape the Australian gambling landscape and create new opportunities for growth and innovation in the industry.
