Shareholders of Australia’s second-largest casino operator The Star Entertainment Group have voted in favor of a AU$300 million ($196 million) package that could save the company from falling into bankruptcy.
Following a general meeting on Wednesday, shareholders approved both the acquisition of shares in the company by US-gaming giant Bally’s Corporation and pokie baron Bruce Mathieson’s Investment Holdings.
The two resolutions were passed with over 99 percent approval by shareholders, effectively cementing The Star’s lifeline.
The company has been desperately trying to stay afloat, after a series of investigations and fines over misconduct, in particular linked to AML and KYC practices.
The board of The Star had unanimously recommended that shareholders vote in favor of the capital injection, as the company’s casinos continue to operate under state-appointed managers amongst its remediation efforts.
The Star has undergone significant management changes over the course of its mitigation efforts, recently appointing Jennifer Cronin as Interim CEO of The Star Gold Coast (for a period of 12 months as it searches for a permanent CEO), Group Chief Risk Officer Rowena Craze, Group Chief Legal Officer Patrick McGlinchey and Independent Chair of The Star Sydney Helen Galloway.
Regarding the new recruitments, in particular that of Galloway, the group highlighted in a Tuesday release that it is ‘continuing its decentralization to its properties while also embedding its new Governance Framework as agreed with its regulator’.
Commenting on the appointments, Steve McCann, CEO and Managing Director of The Star noted that “These appointments add to the depth of experience and talent at the Board and executive level and are a key step in The Star’s progress to suitability”.
