JPMorgan acquires stake in Australia’s cash-strapped Star Entertainment, Reuters

(Reuters) – U.S. bank JPMorgan Chase & Co (NYSE: ) has become a substantial shareholder in Star Entertainment, an exchange filing showed, as shares in the Australian casino operator have fallen sharply in recent years amid liquidity problems.

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

Star shares have been on a downward trend since 2022 after facing multiple investigations into money laundering violations and have lost nearly 50% this year. The stock is down 52% and 66% in 2022 and 2023, respectively.

The company’s shares were trading nearly 2 percent lower at $0.255 as of 0055 GMT.

In its delayed annual results published last week, Star said it could offload assets for ongoing restructuring activities and tackle exits related to regulatory matters.

The gaming company’s corporate lenders have also agreed to provide a new facility of up to US$200 million ($137.00 million) with an immediate injection of US$100 million.

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

Before that, Star claimed Hard Rock Hotels & Casinos was considering a bid, but the Florida chain denied any involvement in a takeover bid.

Star’s future is currently hanging in the balance after an investigation found the casino operator had run into problems with its management and culture and remains unable to operate its Sydney casino.

Last week, Star responded to the New South Wales regulator’s submission notice, addressing the appropriate character to hold a casino licence.

($1 = 1.4599 Australian dollars)