JPMorgan acquires stake in Australia’s cash-strapped Star Entertainment

U.S. bank JPMorgan Chase & Co has become a substantial shareholder in Star Entertainment , an exchange filing showed, as shares of the embattled Australian casino operator have fallen sharply in last few years amid liquidity issues.

JPMorgan became a shareholder with a 5.47% voting power, the filing showed on Thursday.

Star’s shares have experienced a downtrend since 2022 after facing multiple inquiries over anti-money laundering violations, and have lost nearly 50% this year. The stock slumped 52% and 66% in 2022 and 2023, respectively.

Shares of the company were trading nearly 2% lower at A$0.255, as at 0055 GMT. In its delayed annual results posted last week, Star stated that it might offload assets for ongoing restructuring activities and address outflows related to regulatory matters.

The gaming firm’s corporate lenders had also agreed to provide a new facility of up to A$200 million ($137.00 million) with an immediate A$100 million injection.


Earlier this year, Australian asset manager Perpetual increased its stake in the cash-strapped company. Prior to which, Star claimed that Hard Rock Hotels & Casinos was considering a bid, but the Florida-based chain denied any involvement in a takeover bid. Star’s future currently hangs in the balance after an inquiry found the casino operator had been going through issues around its leadership and culture, and that it remains unfit to operate its Sydney casino.

Last week, Star responded to the New South Wales regulator’s show-cause notice, addressing its suitability to hold a casino licence.

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Secular Times is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – seculartimes.com. The content will be deleted within 24 hours.

Leave a Comment