A building brandishing Star Entertainment Group’s logo. Source: Adobe Stock
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

Shares in embattled gambling company Star Entertainment Group (ASX:SGR) are up 23% to 56cps in lunchtime trades on Monday as the company confirms it’s in discussions with interested parties potentially ready to offer a takeover bid.

Key to its announcement today is that Star has confirmed Florida-based international consumer brand Hard Rock is involved in discussions.

One national masthead reported this morning that Star had received notice of Hard Rock’s interest in potentially acquiring the company.

Today, Star said that it “had not received a proposal directly from Hard Rock” but then went on to clarify that Hard Rock is part of a consortium of other entities looking at a “potential transaction.”

The upward share movement reflects a level of enthusiasm in the Australian marketplace – with a takeover likely seen as preferable to a continued struggle in the onshore landscape.

Star’s 1Y returns are down -51.4% YoY and compared to the wider consumer index, it’s underperforming by -66.8%.

However, Star is among the leading companies in this sector – its market cap is $1.5B.

In the background, the NSW government has been conducting an inquiry into Star Entertainment Group particularly with a regard to the company’s casino licences.

The findings of that inquiry haven’t been particularly compelling for investors, though, the stock is still up more than 10% YTD as at 12.40pm AEST on Monday.

The company appears that it may lose its casino licence in NSW.

SGR last traded at 56cps.

SGR by the numbers
More From The Market Online
The Market Online Video

ASX Market Close: Consumer Discretionary rises ahead of interest rates decision | June 14, 2024

The ASX200 is down a third of a per cent to close the week. All sectors…
The Market Online Video

ASX Market Update: ASX slips 0.3%, Discretionary is the only sector to rise | 14 June, 2024

The ASX200 is trading down around 0.3%. The discretionary sector has made gains of 0.3%, all…

Week 24 Wrap: US contagion sentiment not so contagious; iron ore remains pressured

It was, overall, a lacklustre week for the ASX. We only saw one green day on…
The Market Online Video

Geology is King: Sun Silver says Maverick Springs will outshine high-grade Australian mines

Sun Silver Ltd (ASX:SS1) is seeking gold, silver and pathfinder elements at their Maverick Springs project…