Posted By Global Banking and Finance Review
Posted on January 13, 2025
(Reuters) - A Macau-based individual has become the second-biggest shareholder in casino operator Star Entertainment by building a stake of more than 5.5% in the embattled Australian company, a stock exchange filing showed on Monday.
Xingchun Wang, based in the world's biggest gambling hub of Macau, has bought nearly 158.3 million Star shares between September and Jan. 10, according to the filing.
That gives Wang a 5.52% stake in the company, based on its shares outstanding as of Jan. 13, making Wang the second-biggest shareholder in the company, according to LSEG data.
Reuters could not immediately contact Wang, while Star did not immediately respond to a request for comment.
Star's stock took a beating last week, hitting record lows, after the debt-laden company flagged liquidity concerns and said it would be difficult to meet the requirements for the second drawdown of its debt lifeline. It rebounded 13.6% on Monday.
Star has already drawn down half of its A$200 million debt facility and its cash on hand had almost halved in three months to A$79 million at the end of December.
Investment Holdings, with a 9.6% stake, is the biggest shareholder in Star.
Star said both its constitution and deals agreed with authorities in the states of Queensland and New South Wales prohibit any one entity from owning a stake of over 10% in the casino operator. ($1 = 1.6271 Australian dollars)
(Reporting by Aaditya Govind Rao in Bengaluru; Editing by Savio D'Souza)