Chow Tai Fook, Far East Consortium acquires Star stake

Australia-listed Star Entertainment Group has announced it has expanded its strategic partners and will be raising A$490 million (US$375.2 million) from two of its Hong Kong-based partners, Chow Tai Fook and Far East Consortium.

The strategic partnership will see both parties jointly pursue and participate in growth projects in, or adjacent to The Star’s current properties. It will also see the establishment of a marketing alliance to drive high value tourism to The Star’s properties.

John O’Neill said: “The board welcomes Chow Tai Fook and Far East Consortium as shareholders in The Star. Our expanded strategic partnership recognizes the strength of our relationships built over the last four years and the shared vision of investing in properties with valuable long-term licenses in sought after destinations.”

David Chiu, chairman of FEC said: “Strengthening the partnership with The Star and Chow Tai Fook further leverages our considerable complementary capabilities and helps to maximize the long-term value of The Star’s properties in Sydney and South-East Queensland.

Patrick Tsang, CEO of Chow Tai Fook said: “We welcome this further confirmation of the strength and strategic direction of our relationship with The Star and Far East Consortium. This investment in the relationship reflects our confidence in the creation of long term value in destinations that have significant tourism appeal.”

Both Chow Tai Fook and Far East Consortium will each receive 45.8 million new shares at $5.35 per share, and have their shareholdings capped at 19.9 percent. There will be no change to The Star’s board.