Queensland and New South Wales gaming authorities have given the green light to a US-led rescue package for the embattled Star Entertainment Group.
Earlier this year, Star agreed to a $300 million lifeline from US gambling giant Bally’s, as well as Investment Holdings Pty Ltd, which is controlled by pub baron Bruce Mathieson and his family.
The move was approved by shareholders in June. Combined the two companies will own more than half of the embattled casino operator.
On Friday, Queensland Attorney-General Deb Frecklington announced she had given both Bally’s and Investment Holdings the necessary regulatory sign offs.
Attorney-General Deb Frecklington has granted regulatory approvals for the rescue deal. (ABC News: Cameron Lang)
She said an investigation by the state’s Office of Liquor and Gaming Regulation had deemed both entities to be “suitable”.
“Following this investigation, and after careful review of the material presented to me, I have now granted the necessary regulatory approvals, which will allow Bally’s Corporation and Investment Holdings to convert their debt into equity in The Star, at their discretion,” Ms Frecklington said.
“This will provide both entities with a significant ownership stake and influence over the management of The Star’s casino operations in Queensland.”
The NSW Independent Casino Commission (NICC) also announced it had given Bally’s the necessary approvals to become a substantial shareholder of The Star.
Bally’s has casinos across the United States. (AP Photo: Ted Shaffrey)
NICC chief commissioner Philip Crawford said Bally’s and its associated entities had undergone a rigorous assessment.
He confirmed they had satisfied the NICC that there were no adverse findings that would prevent them from becoming close associates of Star.
The NICC also announced it had approved a proposal from Investment Holdings to increase its shareholding in Star.
“Both the close associate approvals and the major change approval for The Star will allow Bally’s and Investment Holdings to move forward with their financial and operational commitments in respect of The Star which we anticipate will be happening very soon,” Mr Crawford said.
In an announcement to the ASX, Star said the approvals would enable the conversation of Bally’s and Investment Holdings’ $300 million investment into equity.
The Star owns casinos in Brisbane, the Gold Coast and Sydney (AAP: Joel Carrett)
It will also allow Star to nominate new members to its board.
In a statement, Star’s chair Anne Ward said the group was pleased with the regulatory approvals.
“This is a critical step in The Star’s progress towards a return to suitability and financial stability,” she said.
“We look forward to working with each of Bally’s and Investment Holdings to facilitate an orderly transition and to provide a pathway for a successful future for The Star.”
Star owns casinos in Brisbane, the Gold Coast and Sydney, and employs thousands of workers.
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‘ Some details of this article were extracted from the following source www.abc.net.au ’
