An Australian tycoon who owns a luxury hotel chain and operates a retail supermarket chain has recently acquired a lot of shares in Star Entertainment Group.
The gambling operator has been struggling financially and has seen a decline in its share price. Bruce Mathieson, however, saw a long-term potential for further development and growth in the local gambling giant and made a decision to invest a total of AU$142 million to acquire a 9.97% stake in the company. Reportedly, the popular businessman, who is currently among the wealthiest people in Australia, started buying Star Entertainment Group’s shares on February 15th and has paid an average price of about AU$1,49 per share.
For the time being, it remains unknown what are Mr Mathieson’s plans for the fate of his shares, the mogul said he remained confident in the Star Entertainment Group’s ability to recover and get back on the way to a prosperous future. However, the company needs to pass the ongoing background checks and receive regulatory approval before the new shareholder is able to actually exercise his voting rights, in line with the company’s inside rules and the agreements made with the Queensland Office of Liquor and Gaming Regulation and the Liquor and Gaming New South Wales.
According to reports, Mr Mathieson’s personal fortune amounts to about AU$3.5 billion, making him one of the richest people in the country. Apart from that, he is known for being the largest pokie machine operator in Australia through the ALH hotel chain, a partnership with the local supermarket chain Woolworths.
Bruce Mathieson Considers the Purchase of Star Entertainment’s Stake as Long-Term Investment
Bruce Mathieson has issued an official statement outlining his plan to establish a long-term investment in the Australian gambling giant. At the time, he noted he believes in the strength of the company’s assets, which include Star Entertainment’s Sydney flagship casino, its property on the Gold Coast, as well as the Queen’s Wharf development in Brisbane. Obviously, that has been good enough for Mr Mathieson to remain confident in the gambling company’s potential, as he shared an intention to remain an investor for no less than three decades.
Although Star Entertainment Group has been facing some difficulties lately, the popular businessman believes that the company would be able to overcome the challenges ahead of it with the right people. He further noted that he is interested in investing in businesses that have been having a hard time and need his experience and expertise to help them get back on track.
As previously reported by Casino Guardian, in 2022 an inquiry in New South Wales found the Australian gambling giant unsuitable to operate its flagship casino in Sydney because of failures in its risk management policies. Still, Star Entertainment was permitted to keep its operating licences and, for the time being, neither the authorities of NSW nor the ones in Queensland have given any indication that they intend to strip the company of the operating permits despite its failures.
Apart from that, Star Entertainment Group has revealed that it sought investors to support an equity-rising initiative estimated at AU$800 million as it turned down the alternate funding proposal of Oaktree Capital Management. Macquarie Capital and Barrenjoey Capital – the bankers of the Australian gambling business – sought early financial support from major investors for a deal that is expected to help the operator pay its debt back. After spending weeks on negotiations with Oaktree, Star Entertainment took other ways into consideration to bring hundreds of millions into the company.
- Author
Olivia Cole
