Star Entertainment Group has confirmed that it is in talks with its Chinese partners to sell its Queen’s Wharf casino precinct provided it gets the best price.

The casino operator’s shares jumped as much as 22 per cent on Monday, to a high of 13.5¢, after it said it has already rejected several confidential, indicative and non-binding proposals from its partners – Chow Tai Fook Enterprises Limited (CTFE) and Far East Consortium International Limited (FEC) – that are seeking to acquire Star Entertainment’s 50 stake in Queen’s Wharf.

Star’s board told investors it continues to engage with the two groups “to ascertain whether a sale of The Star’s 50 per cent interest in Destination Brisbane Joint Venture (DBC) can be negotiated on terms satisfactory to The Star.”

Meanwhile, a Federal Court was told today that 10 former Star Entertainment board members and executives were “essentially blind” to the issue of probity when it came to obvious signs of money laundering and criminal association at its flagship Sydney casino.

The allegations were put forward by Australian Securities and Investments Commission (ASIC) lawyers in their opening statement to the court on Monday at the start of a landmark six-week trial between the corporate regulator and former Star executives and directors.

“The defendants collectively conducted themselves in (such) an incurious and complacent manner that sharp practices became entrenched in the group’s culture,” Dr Ruth Higgins, SC, who is acting for ASIC, told the court.

She said the defendants cultivated and maintained business relationships with overseas junket operators “despite having substantial evidence that those junkets were engaged in illicit activities which may involve money laundering and links to organised crime.”

ASIC launched civil proceedings in the Federal Court in December 2022, accusing the 10 former Star board members and executives for breaching their duty to act with care and diligence.

Higgins told the court of Star staff handling bags of $50 notes tied together with elastic bands being delivered in a blue esky bag and operators blocking the view of CCTV cameras with a blanket.

“These are acts uncluttered by subtlety and fraught with risk,” Higgins said.

While Star executives failed to provide the board with all the troubling information Sun City and other junkets, ASIC told the court that each of Star’s directors failed to take reasonable steps to oversee its executive team in relation to junket operators.

“The board cannot avoid responsibility for Star’s failure to manage those risks,” Higgins said.

The former Star executives who face fines and corporate bans if found guilty by the court, include former chairman John O’Neill, former Business Council of Australia boss Katie Lahey, investment banker Ben Heap and former Macquarie Bank chief Richard Sheppard.

Last week, Star’s former finance boss, Harry Theodore, broke ranks with his former colleagues and settled with ASIC on charges that he knowingly misled NAB about its ATMs being used to funnel more than $900 million into Star’s Sydney casino.

Star’s former chief executive Matt Bekier, is facing court on these and other charges.

Star has been crushed by two inquiries that found it unfit to retain its casino licence.

Hundreds of millions of dollars in fines, rising regulatory expenses and a consumer downturn means Star is now operating at a financial loss.

It is reliant on its lenders, and potential help from the NSW and Queensland governments for its continued survival.

If current management cannot reach a long-term agreement with these parties – or agree to a significant asset sale – Star might be forced into administration.

The trial is due to conclude next month.

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