Diversified property company Far East Consortium International Ltd. and Chow Tai Fook Group agreed to acquire a combined 9.9% stake in Australian integrated resort company Star Entertainment Group Ltd., with Far East paying A$245.2 million for its 4.99% share.
Far East and Chow Tai Fook will each subscribe for 45,825,000 fully paid Star ordinary shares as part of a strategic alliance that will provide the parties with a commercial framework to support future business growth and enable them to take advantage of each other's capabilities and scale.
The transaction will also allow Far East to form partnerships for potential mixed-use property projects pertaining to Star's future developments and to boost its exposure to the Queen's Wharf development in Brisbane, Australia, where it already has an equity stake.
Far East will fund its share of the subscription price using internal resources and external financing.
Far East and Chow Tai Fook plan to seek approval from Australian regulators to boost their combined shareholding in ASX-listed Star to more than 10%, according to a release.