The Star Board Seeks Holders’ Nod for AUD300m Rescue Plan
Ahead of their general meeting scheduled for June 25, 2025, The Star Entertainment Group Ltd's directors have thrown their support behind a AUD300-million rescue package from Bally's Corp and Investment Holdings Pty Ltd, and are urging shareholders to do the same.
LISTEN TO THIS ARTICLE:As outlined in the Notice of Meeting and Explanatory Memorandum, shareholders will vote on resolutions related to substantial investments from Bally's Corporation, AU$200 million ($130.5 million), and Investment Holdings Pty Ltd, AU$100 million ($65.3 million).
The meeting's agenda also includes the consideration of the Placement Capacity Refresh Resolutions under ASX Listing Rule 7.4, which seek approval and validation of convertible notes issued on April 11, 2025. While Bally's Corporation received 278,517,860 convertible notes, Investment Holdings Pty Ltd was allocated 139,258,930 notes.
Upon conversion of the notes, Bally's and Investment Holdings' respective shareholdings in Star Entertainment would exceed 20% each and collectively surpass 50%. As per Australia's Corporations Act, this significant increase in shareholding requires shareholder approval.
Star Entertainment's board has unanimously endorsed the Strategic Investments Resolution and the Placement Capacity Refresh Resolution, recommending that shareholders vote in favor of both.
They believe the rescue package provides a crucial financial boost to the company unless a superior proposal emerges or the independent expert revises its opinion.
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A Vote for Survival
From all indications, The Star's shareholders will likely approve the proposed investment, as it comes at a pivotal moment for the company, which desperately needs a funding lifeline to address its financial difficulties and regain stability.
The company's poor financial situation was exacerbated by regulatory issues and intense scrutiny from regulators after inquiries in New South Wales and Queensland uncovered significant governance and compliance shortcomings, particularly in anti-money laundering and responsible gambling practices.
Since then, the company's leadership has undergone a major overhaul, including boardroom shake-ups and executive exits. Its licenses have also been suspended in Brisbane and Sydney.
The group currently operates under the guidance of state-appointed managers and must undertake vital remedial actions to restore regulatory confidence.
For Bally's Corporation, the investment represents a strategic opportunity to expand its global footprint and tap into the growing Asian gaming market. Similarly, Investment Holdings will use the stake to solidify its influence and decision-making power within the group.
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