Investing.com-- Shares of Star Entertainment Group Ltd (ASX:SGR) surged on Monday after the company confirmed ongoing negotiations to sell its 50% stake in the Destination Brisbane Joint Venture (DBC).
The casino operator said it has received multiple, non-indicative offers from China’s Chow Tai Fook Jewellery Group Ltd (HK:1929) and Far East Consortium International Ltd (HK:0035), though it has yet to accept any offers, citing insufficient value.
Star shares climbed 13.6% to A$0.13 on Monday.
Despite the stock rally, Star Entertainment’s financial position remains under pressure. The company reiterated its liquidity challenges, stating that while it continues to explore various funding solutions, no definitive agreements have been reached.
"In the absence of one or more of those arrangements, there remains material uncertainty as to the Group’s ability to continue as a going concern," the company said in a statement.
The embattled casino group has been struggling with a deteriorating balance sheet amid regulatory probes, fines, and weak earnings performance. Additionally, restrictions on its Sydney casino operations have weighed heavily on revenue, limiting the company’s ability to generate cash flow.