Star Entertainment shareholders have voted in favour of resolutions approving its bail-out by Bally's Corporation and hotel industry billionaire Bruce Mathieson’s Investment Holdings.
Star told the Australian Securities Exchange the four resolutions were passed by way of polls with between 98.83% and 99.36% of votes in favour of them.
Earlier Chair Anne Ward said Star’s ability to continue as a going concern was uncertain due to a challenging operating environment and claims including civil proceedings launched by the Australian Transaction Reports and Analysis Centre (AUSTRAC), Australia's anti-money laundering and counter-terrorism financing regulator.
“The strategic investments by Bally's and Investment Holdings provide cash funding and assist The Star's ability to continue as a going concern, helping to avoid outcomes such as voluntary administration, which is likely not to be in the best interests of shareholders,” Ward told a general meeting of shareholders.
The casino and hotel group is awaiting judgment in the proceedings which ended on 11 June 2025.
Shareholders had been asked to approve investments in Star of A$200 million (US$130 million) by Bally’s and $100 million by the Mathieson’s family along with the issue to them of convertible notes.
Bally’s will own up to 53.7% and Mathieson up to 10.1% of Star if all notes are converted into shares.
Grant Samuel and Associates found in their Independent Expert Report that the terms of the transaction were 'not fair' for shareholders not associated with Bally’s and Mathieson but they had ‘compelling reasons’ to approve it.
Ward said the Board believed the advantages of the strategic investments outweighed the disadvantages, considering the reasons set out in the Notice of Meeting and the Explanatory Memorandum and acknowledging the reasons some may vote against it.
“I encourage you to vote in favour of the resolutions today, which the Directors believe are in the best interests of shareholders,” she said.
The company has already announced the sale of its 50% stake in the new Star Brisbane casino and resort to its joint venture partners Chow Tai Fook Enterprises and Far East Consortium International, which it hopes to complete by the end of June 2025.
At the time of writing Star (ASX: SGR) shares were trading at 13 cents, up 0.05 cents (4%) on the day and capitalising the company at $358.6 million.
