SGR ASX: Star Entertainment shares surge after casino confirms Hard Rock interest

Shares in Star Entertainment have soared 20 per cent after the company confirmed an approach from investors led by Hard Rock Hotels and Resorts.

Star said it had “received inbound interest” from several parties “regarding potential transactions including a consortium of investors which includes the entity Hard Rock Hotels & Resorts ... a local partner of Hard Rock”.Under the proposal, Star would be rebranded Hard Rock. The Florida-based Hard Rock operates more than a dozen casinos including The Mirage in Las Vegas.

In a statement released at the request of the ASX, Star said: “The nature of the interest to date has been confidential, unsolicited, preliminary and non-binding. At this stage, none of the approaches has resulted in substantive discussions.”MST Marquee values the Sydney casino at $473 million, down from $1 billion before a trading update last month, which warned that revenues from the VIP gaming floor at Sydney were down 19.

Crown Resorts, which is owned by private equity giant Blackstone, said this month it would cut up to 1000 jobs across its three casinos – Sydney, Melbourne and Perth – in a restructuring designed to offset weak economic conditions.Star shares closed up 20 per cent to 54¢ on Monday. They are about 50 per cent below what they were trading at this time last year.

An inquiry in NSW – Star told investors it was “focused on its remediation activities” – is considering whether to allow it to operate its lucrative Sydney casino.Hard Rock, which also operates casinos in Hollywood, Cincinnati and Atlantic City, has considered buying into Australian gaming for years. Thecovers wagering and the business of sport from the AFR's Sydney newsroom.

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