Star Entertainment has managed to sidestep administration by securing a significant $300 million investment from Bally’s Corporation, a US-based casino giant. In an official statement to the Australian Securities Exchange (ASX), Star detailed that it has finalised a binding term sheet with Bally’s, which will provide them with the crucial funds in exchange for $33.4 million worth of shares.
Moreover, Bruce Mathieson, the company’s largest shareholder and a billionaire publican, is poised to contribute $100 million towards this deal, which would effectively lower Bally’s financial involvement to $200 million.
The Star Entertainment Group operates casinos in key Australian cities including Sydney, Brisbane, and the Gold Coast. However, the company has faced ongoing financial challenges. Their stock recently traded at a mere 11 cents, representing about 2% of its value from 2018.
In light of these developments, the board of directors at Star intends to unanimously endorse the proposed transaction to shareholders. The casino has been under scrutiny since a 2021 investigation revealed its breaches relating to organised crime and money laundering at its Sydney venue. This funding infusion is anticipated to bolster the company’s operations and aid in stabilising its financial standing in the competitive gaming market.