Star Entertainment said Monday it is assessing a recapitalization proposal from Bally's (BALY) worth AU$250 million ($158.1 million), which could give the US-based company a controlling stake.
The offer, detailed in a letter made public by Star, involves Bally's backing a subordinated convertible note issue that would translate into a 50.1% shareholding and does not require external approvals.
Bally's said it is willing to increase the size of its investment and is open to adjusting the deal's structure to address concerns from key parties.
The company also stated it would bring its operating experience to support a turnaround at Star, citing a track record in rebuilding casino assets globally.
Star said the offer is under consideration alongside other recapitalization options as it works to stabilize its financial position and avoid administration.
Bally's shares were down more than 3% in recent Monday premarket activity.
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