🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

JPMorgan acquires stake in Australia's cash-strapped Star Entertainment

Published 10/03/2024, 09:38 PM
Updated 10/03/2024, 09:42 PM
© Reuters. FILE PHOTO: Star Entertainment logo is seen in this illustration taken, April 23, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
JPM
-

(Reuters) - U.S. bank JPMorgan Chase & Co (NYSE:JPM) has become a substantial shareholder in Star Entertainment, an exchange filing showed, as shares of the embattled Australian casino operator have fallen sharply in last few years amid liquidity issues.

JPMorgan became a shareholder with a 5.47% voting power, the filing showed on Thursday.

Star's shares have experienced a downtrend since 2022 after facing multiple inquiries over anti-money laundering violations, and have lost nearly 50% this year. The stock slumped 52% and 66% in 2022 and 2023, respectively.

Shares of the company were trading nearly 2% lower at A$0.255, as at 0055 GMT.

In its delayed annual results posted last week, Star stated that it might offload assets for ongoing restructuring activities and address outflows related to regulatory matters.

The gaming firm's corporate lenders had also agreed to provide a new facility of up to A$200 million ($137.00 million) with an immediate A$100 million injection.

Earlier this year, Australian asset manager Perpetual increased its stake in the cash-strapped company.

Prior to which, Star claimed that Hard Rock Hotels & Casinos was considering a bid, but the Florida-based chain denied any involvement in a takeover bid.

Star's future currently hangs in the balance after an inquiry found the casino operator had been going through issues around its leadership and culture, and that it remains unfit to operate its Sydney casino.

© Reuters. FILE PHOTO: Star Entertainment logo is seen in this illustration taken, April 23, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

Last week, Star responded to the New South Wales regulator's show-cause notice, addressing its suitability to hold a casino licence.

($1 = 1.4599 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.