Star board urges shareholders to approve Bally's rescue package
Australia’s embattled 바카라 operator, The Star Entertainment Group Ltd, has urged its shareholders to “unanimously recommend” the A$300 million ($192.3 million) rescue package from United States-based 바카라 business Bally’s Corp, and Australian conglomerate Investment Holdings Pty Ltd. In a statement, the operator said that the recommendation stands “in the absence of a superior proposal” and if the independent expert maintains its current opinion as outlined in the Explanatory Memorandum.
Shareholders “better off” if the deal proceeds
The information was provided , which included a report by investment consultant Grant Samuel & Associates Pty Ltd, on the proposed transaction. Grant Samuel’s detailed report emphasised that shareholders would be “clearly better off” if the deal proceeds. However, the report cautioned that Bally’s was carrying over $3 billion in gross borrowings. Only $20 million of the total matures annually until 2027. While over $1.8 billion is scheduled to mature in 2028.
The A$300 million funding package comprises a multi-tranche convertible note and subordinated debt instrument, split between Bally’s Corp and Investment Holdings. Bally’s will contribute A$200 million while Investment Holdings, controlled by the Mathieson family, will be investing A$100 million to the Star. Previously, the arrangement was that Bally’s would invest at least A$250 million of the total amount. The agreement would see Bally’s take control of the operator.
Bally’s offer for Star
This deal became a top priority for Star Entertainment after a failed attempt to refinance nearly AU$1 billion in debt. Star had announced that it was exploring a lifeline from Bally’s after it had “not received a binding debt commitment letter” from Salter Brothers Capital, leading to the withdrawal of its AUD940 million refinancing proposal.
After taking Bally’s rescue offer, the Star reported its financials, swinging to an operating loss in the third quarter. The loss was attributed to declining foot traffic, ex-Tropical Cyclone Alfred and tighter gambling regulations. For the quarter, Star has reported a loss in earnings before interest, taxes, depreciation and amortisation (EBITDA) of A$21 million. The of A$271 million for the third quarter—a drop of 9 percent from the December quarter, and a 35 percent drop year-on-year. Sydney’s flagship venue has seen a 17 percent drop in daily revenue compared to its four-week average before 19 August 2024. Revenue at the venue fell 8 percent quarter-on-quarter, with cash limits dropping further from A$5000 to A$1000 in August.
