Macau investor becomes Star Entertainment Group’s second largest shareholder
Xingchun Wang, a Macau-based investor, has reportedly become Star Entertainment Group’s second-largest shareholder.
Australia.- Xingchun Wang, a Macau-based investor, has reportedly become the second-largest shareholder in Star Entertainment Group after acquiring nearly 158.3 million shares between September 2024 and January 10, 2025. Wang now has a 5.52 per cent stake in the company.
Star’s stock price fell sharply last week, hitting record lows after the company raised alarms about its financial situation and stated it might struggle to meet conditions for a second drawdown of its debt line. However, the stock rebounded by 13.6 per cent today (January 13).
On January 10, the company announced its available cash as of December 31, 2024, plunged to AU$79m (US$49.16m). That’s a decrease of AU$70m (US$43.56m) from the previous report at the end of September 2024 when the company posted available cash was AU$149m (US$92.72m).
According to the company, the reduction in available cash reflects the continued difficult trading conditions the company has faced throughout 2024.
This includes essential capital expenditure and significant items including upfront fees relating to the establishment of a new facility agreement and the first AU$5m (US$3.11m) instalment of the AU$15m (US$9.33m) fine imposed by the New South Wales Independent Casino Commission (NICC) on October 17, 2024, following its consideration of the Bell Two Report.
The casino operator also cited “significant legal and consulting fees, ongoing transformation and remediation activities, and joint venture contributions” as a reason for the reduction in available cash.
See also: The Star Gold Coast licence suspension deferred
Star said it continues to work towards the fulfilment of conditions that must be met to draw down the additional AU$100m (US$62.23m) of a new loan agreement.
Star Entertainment Group posted revenue of AU$351m (US$230.85m) for the first quarter of the financial year 2024/25, down 18 per cent year-on-year and 11 per cent sequentially. Earnings before interest, taxes, depreciation and amortisation (EBITDA) were negative AU$18m (US$11.84m) compared to positive AU$23m (US$15.1m) in the previous quarter.
The company cited a “challenging operating environment and the continued implementation of mandatory carded play and cash limits”. It expects to release its half-year results for the period ended December 31, 2024, on February 28.
