The Star seeks shareholder approval for US$8.4m share settlement
Bally’s and Investment Holdings would receive 62.57m and 43.35m shares respectively under the proposed settlement.
Australia.- The Star Entertainment Group has scheduled its 2026 annual general meeting (AGM) for October 27, with shareholders set to consider a proposed issue of more than 105.9m shares to Bally’s and Investment Holdings.
The proposed shares would settle payment-in-kind (PIK) interest liabilities that remained after the two investors’ principal debt was repaid in November 2025. Bally’s is owed an estimated A$7.03m (US$4.94m) in PIK interest, while Investment Holdings has an estimated liability of A$4.87m (US$3.42m). The amounts accrue interest at 9 per cent a year.
The Star is proposing to issue 62.57m shares to Bally’s Nominee and 43.35m to Investment Holdings at A$0.1123 per share. The company said settling the liabilities with shares would preserve cash and liquidity rather than require a cash payment.
The proposed transactions require shareholder approval under ASX Listing Rule 10.11 because of the investors’ existing interests in The Star. If both resolutions are approved, Bally’s stake would increase from 37.67 per cent to about 38.01 per cent, while Investment Holdings’ holding would rise from 23.16 per cent to approximately 23.44 per cent, based on their latest substantial shareholding notices before the AGM notice.
The company expects to issue the shares on the day after the meeting or as soon as practicable, subject to approval. Because the PIK liabilities continue to accrue interest until settlement, a delay could result in additional shares being required.
The AGM will also see the election of five directors: Bally’s nominees Soo Kim and George Papanier, and independent directors Don Pasquariello, Brooke Lindsay and Grant Bowie. Shareholders will also vote on CEO and managing director Bruce Mathieson Jnr’s performance rights.
Another resolution seeks to extend The Star’s proportional takeover provisions for another three years to October 27, 2029. The provisions were last renewed in November 2023.
The AGM will take place at The Star Sydney’s Sydney Event Centre in Pyrmont and will also be available online. Shareholders must be recorded on the register by 10am Sydney time on October 25 to vote.
