Key points:
- Macau investor Xingchun Wang has become Star Entertainment's second-largest shareholder with a 5.52% stake
- Star’s financial struggles include a significant cash decline and ongoing challenges in accessing additional debt funding
- The company faces regulatory ownership caps and continuing liquidity challenges while working to secure additional funding
A Macau-based investor, Xingchun Wang, has emerged as the second-largest shareholder in Australia's beleaguered casino operator, Star Entertainment Group, according to a recent stock exchange filing.
Wang has accumulated a 5.52% stake in the company by acquiring nearly 158.3 million shares between September 2024 and 10 January 2025.
This investment positions Wang behind only Investment Holdings, which holds a 9.6% stake in Star Entertainment.
The development comes at a critical time for Star Entertainment, which has been grappling with severe liquidity concerns.
Good to know: The regulatory framework governing Star Entertainment prohibits any single entity from holding more than a 10% stake, a rule designed to ensure no single investor can exert undue influence over the company’s operations
The company's available cash position has deteriorated substantially, dropping from AU$149m ($92m) to AU$79m in the quarter ending December 2024, despite drawing down AU$100m from the first tranche of a new debt facility.
The company is still working to meet the requirements for accessing the second tranche of its debt lifeline.
The company faces multiple financial pressures, including challenging trading conditions, essential capital expenditure and significant regulatory compliance costs. These expenses include a recent AU$5m instalment payment toward a larger AU$15m fine imposed by the NSW Independent Casino Commission.
While Star's stock hit record lows last week, it showed signs of recovery with a 13.6% rebound today.
