Hard Rock International has confirmed that it is not involved and hasn’t authorised any discussions or negotiations on its behalf regarding a proposed purchase of The Star Entertainment Group.
Earlier this week, The Star told its investors that it had received interest from several external parties about potential transactions, which have been unsolicited, preliminary and non-binding.
The Australian casino operator added that none of the approaches had “resulted in substantive discussions” but it “remains focused on its remediation activities in New South Wales and Queensland and participating in the Bell Two Inquiry”.
The party that had approached The Star was not named by the operator at this time. However, a report in the Australian Financial Review later stated that Hard Rock International was considering purchasing the Australian operator and renaming it Hard Rock.
According to The Sunday Morning Herald, the Australian Securities Exchange requested The Star to explain the nature of the discussions which had taken place regarding a potential purchase.
The Star then explained in another statement that it hadn’t received a proposal directly from Hard Rock Hotels and Casinos, but it had “received inbound interest from a number of other external parties regarding potential transactions including a consortium of investors which includes the entity Hard Rock Hotels & Resorts (Pacific), which The Star understands is a local partner of Hard Rock”.
Hard Rock denies involvement
However, the purchase speculation has led to confusion, resulting in Hard Rock publishing a statement of its own to clarify that they are not involved in a proposed purchase of The Star.
The operator also noted that it is investigating the situation and would be seeking legal action if necessary.
The Hard Rock statement read: “Hard Rock International would like to address recent reports regarding a proposed purchase of the Star Entertainment Group Limited (Star) in Australia. We want to make it clear that Hard Rock International is not involved in, nor has it authorised, any discussions, activities or negotiations on its behalf in connection with a proposed bid for Star. Hard Rock International has similarly not authorised the use of the Hard Rock brand in connection with any proposed bid for Star by any third party.
“Our brand is built on a legacy of integrity, excellence and a commitment to our guests, partners, and team members worldwide. Any misuse of the Hard Rock name in unauthorised business dealings is taken very seriously. We are currently investigating this matter and will pursue all necessary legal actions to protect our brand and reputation.
“We urge stakeholders and the public to rely only on official communications from Hard Rock International for accurate information regarding our business activities and partnerships.”
The Star adds further clarity
The Star has since released a follow-up statement to add further clarity for investors.
“The Star Entertainment Group Limited (The Star or Company) refers to the announcements released yesterday following various media articles regarding potential corporate activity involving The Star,” noted The Star’s statement.
“As noted yesterday, The Star has not received any proposal directly from Hard Rock International.
“The Company has received inbound interest from a number of external parties regarding potential transactions, including an incomplete and indicative proposal from a consortium of investors which included the entity “Hard Rock Hotels & Resorts (Pacific)”.
“The Star confirms that it has not engaged in substantive discussions with the consortium in respect of its proposal.
“The company today notes the statement issued by Hard Rock International which clarifies that Hard Rock International is not involved in, nor has it authorised, any discussions, activities or negotiations on its behalf in connection with a proposal for The Star.
“The Star will keep shareholders informed in accordance with its continuous disclosure obligations.”