Pubs baron Bruce Mathieson has emerged as a white knight backer at struggling casino operator The Star Entertainment Group, offering to chip into a discounted equity raising due to launch this week.It is understood Mathieson and his family have built a stealth stake in the casino group in the past fortnight, and would line up for more stock should the company proceed with a discounted rights issue on Thursday as expected.
Star had its bankers testing appetite in an $800 million equity recapitalisation on Wednesday, with a view to have the offer underwritten and ready for market by Thursday morning. Investment banks Barrenjoey Capital and Macquarie Capital were on hand to underwrite the deal, sources said.AdvertisementMathieson and his family are understood to have built about a 4 per cent stake in the past fortnight, buying via stockbroker Ord Minnett and in an investment unrelated to its ASX-listed pubs and pokies company Endeavour Group.
Ord Minnett, known for its small cap coverage and part-owned by the Mathiesons, traded $91 million of Star stock in the past 10-days.The fact Star had its bankers talking to investors about an $800 million equity offer on Wednesday was as good an indication as any that the board was preparing to go down the equity recapitalisation route, and reject an earlier funding proposal from US investor Oaktree Capital Management.
The big question is exactly where Star’s proceeds will go. The group’s expected to use the equity to shore up its balance sheet. but is also awaiting potential fines from gaming regulators and AUSTRAC.
Entertainment Entertainment Latest News, Entertainment Entertainment Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: FinancialReview - 🏆 2. / 90 Read more »
Source: GuardianAus - 🏆 1. / 98 Read more »