JP Morgan confirmed it has boosted its voting power in Australian casino operator The Star by 6.34 percent, raising its total stake to 7.41 percent.
This increase translates to an uptick in shareholding from around 182 million shares to nearly 213 million.
The backdrop to this development is the troubled status of Star Entertainment, which recently announced the sale of The Star Event Center, as the company acknowledged that ‘there remains material uncertainty as to the group’s ability to continue’.
In its most recent financial report, The Star confirmed that it had available cash amounting to AU$78 million ($48.5 million) as of December 31st, 2024 but outlined concerns it would be unable to meet conditions to raise more funding.
The company’s constitution imposes restrictions that prevent any single individual from holding more than 10 percent voting power within the organization, complicating potential future acquisitions.
Even the recent appearance of Macau-based petrochem mogul Xinchun Wang as the second-largest investor in the group – holding 6.52 percent of voting power, and attempts to negotiate with state governments on reducing the tax burden, have failed to alleviate concerns that The Star might not pull through.