Majority investor supports Bally's AUD 250 million bid for Star entity.
Rewritten Article:
Star's largest shareholder gives nod to Bally's AU$250m stake acquisition bid
In a significant turn of events, major Australian gaming titan Star Entertainment Group might be on the verge of sealing a crucial cash injection deal with Bally's Corporation, following approval from Star's top shareholder.
Star scrambles to escape turbulent waters with Bally's help
Bally's Corporation proposed a whopping AU$250m offer, roughly equal to $160m, to secure a 50.1% controlling stake in Star Entertainment Group, aiming to help the struggling company navigate its ongoing financial and regulatory challenges.
Confident in Star's potential and the Australian casino market, Bally's Chairman Soo Kim has iterated these sentiments across numerous interviews lately, proclaiming that the company is positioned to aid Star Entertainment Group in overcoming its current difficulties.
Kim told Australian Financial Review earlier this week that "We are usually the buyer of last resort," stressing Bally's Corp's unique ability to help Star Entertainment Group ride out this storm.
Bally's has remained steadfast in its promise to revitalize Star Entertainment Group's assets while preserving shareholder value, a crucial aspect when considering any deal that could essentially transfer control of the company to another entity.
Mathieson negotiates for larger share
Business tycoon Bruce Mathieson, who already holds a 10% stake in Star Entertainment Group and operates pubs and poker machines, has announced his readiness to accept Bally's offer and is even willing to invest an additional AU$50m or $31m to boost his ownership to 20%.
Regulatory approval for Mathieson to increase his stake to 20% has already been granted, potentially simplifying the process for Star in selling the idea of handing over control to Bally's Corporation to its Board and shareholders.
Star has been grappling with financial hardships and is currently engaging with two other significant partners, Chow Tai Fook and Far East Consortium, both based in Hong Kong. These companies have expressed interest in acquiring Star's 50% stake in The Star Brisbane property, which opened last August, with the goal of strengthening their standing in the Australian land-based casino market while providing sufficient liquidity to Star.
When Star received Bally's proposal in March, the board had announced that it was evaluating the offer but remained uncertain about moving forward.
In February, Okatree Capital Management proposed refinancing Star Entertainment's AU$650m debt, giving the company more time to navigate its current predicament.
Unsplash.com provided the original image used in the article.
- Bally's Corporation offered to purchase a controlling stake worth AU$250m in Star Entertainment Group, aiming to reinvigorate the company's business and finance through a challenging financial period.
- Soo Kim, the Chairman of Bally's Corporation, has expressed confidence in Star Entertainment Group's potential and the Australian casino market, stating that the company is poised to assist Star in overcoming its current difficulties.
- Bruce Mathieson, a major shareholder of Star Entertainment Group, has announced his readiness to accept Bally's offer and even offered an additional AU$50m to boost his ownership to 20%.
- By selling a significant stake to Bally's Corporation, Star Entertainment Group may secure the necessary investment to reinforce its assets, preserve shareholder value, and potentially pave the way for a smooth transfer of control.
