Pub magnate Mathieson commits $60 million to Star Entertainment, Bally’s investment scaled back

Australian casino operator Star Entertainment Group said on Tuesday it had secured a AU$100 million ($60 million) investment from pub tycoon Bruce Mathieson’s Investment Holdings Pty Ltd, scaling back a previously announced bailout deal with U.S.-based Bally’s Corporation.

The new capital injection will come in the form of convertible bonds and is subject to shareholder approval at a meeting scheduled for late June. As a result of the agreement, Bally’s commitment will reduce from AU$300 million ($180 million) to AU$200 million ($120 million), trimming the U.S. operator’s potential stake in the struggling Australian firm.

Mathieson, who currently holds around a 10% stake in Star, is expected to significantly boost his shareholding through the deal. Bally’s would have held up to 56.7% of Star had it subscribed to the full AU$300 million under the original terms.

Both investments are part of a broader rescue package aimed at stabilizing Star’s finances amid ongoing regulatory and financial headwinds. Star has framed the investments as vital to avoiding administration, with the terms of Mathieson’s subscription mirroring those of Bally’s.
    
Separately, Star confirmed the completion of its sale of The Star Sydney Event Centre to Foundation Theatres following approval from the New South Wales Independent Casino Commission (NICC). As part of the AU$60 million transaction, funds placed in escrow by Foundation Theatres were released as consideration.

However, AU$58.1 million in proceeds from the disposal remain in escrow, pending further approval. The NICC has stipulated that these funds can only be accessed once shareholders approve the proposed deals with Bally’s and Mathieson. 

“If shareholder approval is not obtained, then The Star may request the release of the amounts in escrow, subject to the group’s satisfaction of certain financial viability conditions,” the company added.