Australian gaming group Star Entertainment Group Limited (The Star) has addressed recent market speculation and fluctuations in its securities trading.
The statement is a response to an Australian Stock Exchange (ASX) price query sent to the company on July 29th.
Such a request is commonly issued to companies that record unexpected share price movements without underlying news. The ASX will send the company a letter, sometimes pausing trading until the letter is responded to. The Star’s share price increased by about 16 percent over the past week.
In an official statement, Star Entertainment clarified that it is not aware of any new information that could explain the recent trading activity, beyond what has already been disclosed to the market.
The group also referred to recent media speculation regarding potential corporate activities and financial challenges faced by The Star, speculations highlighted in various media outlets, including an article in The Australian on July 27th, 2024.
The article alleges that four bidders are currently considering potentially acquiring The Star.
These include global investment firm Blackstone (majority owner of Crown Resorts, The Star’s main rival) – with a AU$3.3 billion ($2.16 billion) bid, investment firm Oaktree Capital Management – with a AU$3 billion ($1.96 billion) bid, Asian casino operator Genting Singapore – which was said to have submitted a AU$13.8 billion (US$9 billion) proposal, and private equity group Pacific Equity Partners with an undisclosed bid.
The report suggests that The Star’s recent regulatory issues and financial troubles, including money laundering scandals and management upheaval, made it an attractive takeover target for the various bidders looking to capitalize on its situation.
Addressing these issues, The Star referred to the upcoming report related to the inquiry into the company’s suitability to operate in New South Wales.
The group is facing a second inquiry into its Star Sydney casino operations, with the report scheduled to be submitted to the NSW Independent Casino Commission on July 31st.
The Star also reaffirmed its commitment to compliance with the ASX Listing Rules, specifically those pertaining to continuous disclosure obligations, and confirmed that its responses to recent inquiries were approved by the Chairman and authorized for release in line with the group’s Market Disclosure Policy.
The company announced the appointment of a new group CEO and Managing Director last month after a raft of executive changes recently, with the group’s Chairman – David Foster – resigning, following the resignations of CEO Robbie Cooke and CFO Christina Katsibouba in the first quarter.
