Star Entertainment Group Ltd. said it had raised A$800 million ($545 million) in fresh equity, giving the embattled Australian casino operator breathing room as it confronts tighter regulation and potentially higher taxes.
(Bloomberg) — Star Entertainment Group Ltd. said it had raised A$800 million ($545 million) in fresh equity, giving the embattled Australian casino operator breathing room as it confronts tighter regulation and potentially higher taxes. Â
The capital raising includes a A$685 million rights offer and a A$115 million institutional placement, Star said in a statement Thursday.
Star’s market value has evaporated since October, when the company was found unfit to hold gaming licenses in Sydney — home to its flagship property — and in Queensland state, where it operates two other casinos. Inquiries concluded Star had poor anti-money laundering controls, allowed patrons to flout China’s capital controls and was at risk of criminal exploitation.Â
Star’s casinos are all operating under a government-appointed supervisor as the company attempts to tighten compliance to regain regulatory approval. Star said Feb. 13 it was in talks with the New South Wales state government about proposed changes to duties that would have a significant impact on the Sydney casino’s profitability.
–With assistance from Michael Sin.
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