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

Perpetual

04/10/2024 02:34

Oct 4 (Reuters) - U.S. bank JPMorgan Chase & Co  JPM.N 
has become a substantial shareholder in Star Entertainment
 SGR.AX , 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
 PPT.AX  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.
    

    ($1 = 1.4599 Australian dollars)
    

 (Reporting by Roshan Thomas in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((Roshan.Thomas@thomsonreuters.com;))