Financial Backer Mathieson Endorses Bally's Proposal
In a significant turn of events, Bruce Mathieson, a prominent investor in the Star Entertainment Group, is poised to play a pivotal role in the potential takeover of the Australian casino giant. With his family owning 10% of Star's equity, Mathieson's influence is set to grow as he co-invests alongside Bally's Corporation, a US casino operator.
The proposed rescue package, valued at approximately AU$300 million, includes a total injection of funds, with Bally's contributing AU$200 million for a 38% stake and Mathieson's Investment Holdings investing AU$100 million for a 23% stake in Star Entertainment. This deal, which received overwhelming support (98% approval) from shareholders, aims to stabilise Star Entertainment amid financial difficulties, including burdensome debt from the Queen’s Wharf project.
Bally's, based in Rhode Island, may be able to execute the transaction swiftly without having to approach capital markets, thanks in part to Mathieson's contribution. The takeover offer allows Star to retain its trio of primary gaming assets, including The Star Grand Brisbane casino resort, which was previously agreed to be sold to a Hong Kong investment group to secure financing.
If successful, Mathieson is likely to garner an increased equity stake in the company. Furthermore, he could potentially secure a seat on the board of directors, adding another layer of influence to his role in the company.
Bruce Mathieson Jr., the family's representative, publicly expressed sympathy for Australian retail investors suffering losses in Star equity in January. Despite the stock's tumble, Mathieson Jr. has continued to invest in Star.
Notably, Mathieson has approval from Australian gaming regulators to potentially double his stake in Star. This approval, coupled with his significant financial contribution, positions him as a key player in the company's future direction.
Star CEO Steve McCann is reportedly holding talks with Hong Kong investors, but may have no choice but to consider Bally's offer. The offer from Bally's, led by Chairman Soo Kim, founder of Standard General, the hedge fund that recently acquired Bally's, presents a viable solution for Star to navigate its financial challenges and secure a brighter future.
- Rumors of mergers and acquisitions are swirling in the finance world, with Bally's Corporation, a US casino operator, and Bruce Mathieson's Investment Holdings potentially investing in the Star Entertainment Group, a troubled Australian casino giant.
- The financial stakes in this Asia Pacific gaming business deal are significant, with Bally's contributing AU$200 million for a 38% stake and Mathieson's Investment Holdings investing AU$100 million for a 23% stake in Star Entertainment.
- This potential takeover offer could lead to increased equity for Bruce Mathieson, and possibly a seat on the board of directors, giving him more influence over the company's business decisions.
- With approval from Australian gaming regulators to potentially double his stake in Star, Mathieson's pivotal role in the company's future direction is increasingly evident.
