SGR ASX: Billionaire Bruce Mathieson backs Ballys bid for Star with $50m sweetener

The company’s chief executive, Steve McCann, needs to secure long-term financing from an unnamed party for the accounts to be signed off and for trade to resume. A deadline for the blow-up of a deal with the casino operator’s Hong Kong investors is approaching. Yesterday, there were media reports that Star was “on the brink” of inking a deal with its joint venture partners Chow Tai Fook and Far East Consortium, to buy its 50 per cent interest in the development. The falls this week have been driven by several factors, including US trade policy uncertainty at a time when fears of a looming US recession are rising. Locally, the falls have been exacerbated by more weakness in the big banks and worsened after BHP, RIO, South32, and energy giant Woodside all traded ex-dividend. “The horrific price action in the ASX200 has continued today, slipping below 8,000 for the first time in almost six months. Canstar analysis of RBA credit card statistics and in-house survey data shows that of those with credit card debt, the average amount owing is estimated to be $4,420.
New rules that would have restricted patrons to gambling $1000 in cash per day will not be introduced for another two years after lobbying from online casino no deposit free spins Australia giants. This came as bad news with Star’s performance historically lagging behind Crown Aria casino payouts in Melbourne, with both revenue and earnings falling short of its competitor. This long history of underperformance continues despite Sydney being the country’s largest city and international gateway to Australia. “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.” In an update to the stock exchange this morning, Star reported a loss for the second quarter — although not as bad a loss as the previous period, as it managed to cut costs. Earlier this week, Star published its quarterly report, which precedes audited financial accounts due next month.
Exchange operator ASX automatically suspended shares in Star on Monday morning after the casino operator missed Friday’s deadline for issuing its earnings update for the first half of the financial year. There remains a large amount of uncertainty surrounding the future of Star’s earnings recovery. The pending AUSTRAC fine, eventual outcome of its Richard Casino video slots license and a probable capital raise in the coming months all weigh heavy on its future performance. The collapse in earnings since fiscal 2024 has indicated Star might not have sufficient liquidity to stay afloat amidst near-term earnings headwinds, the AUSTRAC fine and equity contributions to redevelopment. With a $200 million emergency debt facility at a rate of 13.5%, it appears Star may be buying time ahead of a potentially value-dilutive equity raise in fiscal 2025. Queensland is currently the only state where Star holds an exclusive position and consequently the company is throwing substantial amounts of capital (~$3 billion) in ensuring it stays that way.
Both groups used a model banned by almost every jurisdiction in the world, apart from Macau. They allowed outsiders to run private gambling operations within the confines of their casinos. That paved the way for organised Chinese crime syndicates to launder money in Australia. On Friday, the shares briefly dropped below 20c, valuing the group at just $1.2 billion. Strip away the huge money-laundering operation from mainland Chinese-based criminal gangs, and the business model upon which Australia’s two big Darwin casino FAQs groups has been built suddenly is under threat. That annoying little slogan tacked on to the end of every broadcast gambling advertisement, as a warning to those with an addiction, has come back to bite casino owners and investors.
On Tuesday, a fresh notice showed his shareholding had increased from 5.5 per cent to 6.52 per cent. The following $200 million is subject to a shareholder vote and regulatory approvals. (It might even come in two lots of $100 million, the first after a shareholder vote and the latter after approvals). A proposed long-term funding deal with Salter Brothers last week could not be finalised. The first payment — about $100 million — will be made on Wednesday to allow the operator to stay afloat. Last month it offered Star a $250 million deal and the Australian casino group wouldn’t even meet with them. Company information displayed on The Australian Financial Review is sourced from Morningstar and ASX and is subject to their terms and conditions as set out in our PlayAmo bonus terms of Use.
He said he would not like to see the company go into liquidation “for the people’s sake”. “To me, it has been a disaster dealing with the management of Star and I think … there is no doubt the board should be blamed for how bad it is,” he told ABC Radio Brisbane. “What we would want to see is the government work to make that process as quick as possible, while still ensuring that any new operator is compliant with the regulations and the legislation.” He said the government would also need to move quickly to approve a new operator should there be a sale. Mr Jones said in the event Star did go into administration the union would want the state governments to work quickly with the administrator and existing lenders to ensure the administration was funded and the doors stayed open.
Star was expected to run out of cash this week but managed to pay its 8000 staff in recent days. The New South Wales Independent Excalibur hotel casino email support Commission (NICC) found that the casino operator had not done enough to address “governance and cultural concerns” raised in a 2022 inquiry that found it unfit to hold a licence. A Queensland inquiry found The Star actively encouraged people banned from gaming in Victoria and NSW to gamble at its casinos in the Sunshine State.
Australian shares fell to its lowest close in more than six months, wiping off about $50 billion in market value. Star Entertainment will receive a $53 million lifeline, with its Hong Kong joint venture partners confirming they will buy its stake in the Brisbane Queen’s Wharf development, pulling it back from the brink of collapse. As well as negotiating with lenders, Star has pleaded for help from state governments, and on Friday, Star chief executive Steve McCann called for its various stakeholders to come together. As it fights for survival, Star said it was continuing discussions to attempt to deal with the crunch on its finances, but there was no guarantee it would be able to reach a deal to resolve its situation. It acknowledged the uncertainty over its ability to continue operating if the negotiations were unsuccessful.