Down and Dirty on Star's Au$250m Bet with Bally's
Majority shareholder prefers AU$250m bid by Bally for Star company.
Star Entertainment Group might be sailing closer to accepting Bally's life raft, following some heavy-hitting endorsements. Star's major shareholder just gave the thumbs-up to Bally's proposed AU$250m deal, aiming to grab a controlling 50.1% stake.
Star's Perilous Position Demands a Cash Infusion
Bally's is stepping up with a timely offer, to the tune of AU$250m, to help Star Entertainment Group beat its current money woes. They aim to guide the company out of its deep-seated financial and regulatory mess.
Bally's Chair, Soo Kim, has been spreading the word that Star can bounce back—and he's confident Bally's has the goods to shine in the Aussie casino scene. Kim's repeatedly stated that Bally's can turn Star's fortunes around, emphasizing shareholder value preservation as key.
"Hey, it's not too late! Our deal? No strings attached—any issues, we’ve got this. Every saving we've made, they said 'it ain't possible', but we're usually the last resort," Kim told the Australian Financial Review. Kim insists that Bally's is the ideal knight in shining armor for Star Entertainment Group during this tough time.
Kim echoed Bally's initial promise from March, promoting the deal as a way to revitalize Star's assets while safeguarding shareholder value.
Mathieson Makes a Move: Increasing His Star Stake
Enter Bruce Mathieson, a business tycoon with a stake in pubs and poker machines, and a 10% slice of Star Entertainment Group. Mathieson's given the green light, ready to throw in an additional AU$50m to elevate his stake to a meaty 20%.
Mathieson's already cleared to increase his Star Entertainment Group stake to 20% by regulators, making it easier for Star to sell the controlling-stake idea to its board and shareholders.
Star's been juggling rough financial waters, exploring potential deals with Chow Tai Fook and Far East Consortium, both Hong Kong-based bigwigs. The duo's eying Star's 50% stake in The Star Brisbane property and willing to pour some cold hard cash to help Star navigate this rough patch.
When Bally's extended its offer in March, Star informed it was evaluating it but wasn't committing to anything. In February, Okatree Capital Management offered to refinance Star Entertainment's AU$650m debt, offering them more breathing room during this crisis.
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[1]https://www.afr.com/business/companies/star-entertainment-ausd300m-ballys-deal-amended-star-still-evaluating-proposal-20210402-p57pak
[2]https://www.asx.com.au/asxreleases/20210304/pdfs/442snj99t9f051.pdf
[3]https://www.afr.com/companies/retail/ballys-bids-for-star-entertainments-control-in-tough-market-for-casinos-20210308-p57p65
[4]https://www.afr.com/companies/star-entertainment-group/ballys-inches-closer-to-dealing-with-star-entertainment-as-agreement-depends-on-approvals-20210423-p57sqz
- Bally's Chair, Soo Kim, expressed optimism that the AU$250m deal with Star Entertainment Group could reinvigorate the company's business and safeguard shareholder value.
- Shareholder and business tycoon, Bruce Mathieson, has agreed to invest an additional AU$50m to increase his Star Entertainment Group stake to 20%, thereby strengthening his support for the proposed Bally's deal.
- If approved, Bally's offer of AU$250m could potentially restructure Star Entertainment Group's financial affairs, providing a much-needed cash infusion to help navigate current money woes.
- Kim highlighted that the Bally's offer comes with no strings attached, offering an attractive option for investors looking to diversify their investing portfolios in the gambling and finance sectors.
