The company is currently facing financial problems and has seen its share price drop. Mathieson’s business acumen and vision saw the long-term potential of Star Entertainment Group’s growth and development. He invested an incredible AUD142 million ($96million) to purchase his share in the company.
Bruce Mathieson plans to make a long-term investment into Star Entertainment Group
Bruce Mathieson expressed confidence in the company’s ability to recover from its current uncertain state, despite his plans for the shares. He must obtain regulatory approvals and complete background checks before he can exercise his voting right, per the company’s Constitution and the agreements with Liquor and Gaming New South Wales and Queensland Office of Liquor and Gaming Regulation.
Mathieson, who has a fortune of $2.5 billion, is one of Australia’s most wealthy individuals. Mathieson is also well-known for his ownership of the hotels group ALH and a partnership with Woolworths, making him the country’s largest poker machine operator.
Mathieson made a statement to The Australian Financial Review describing his plans to make a long-term investment into Star Entertainment Group. Mathieson has strong faith in the company’s assets which include the massive Sydney casino, Queen’s Wharf in Brisbane and Gold Coast properties. Mathieson expressed confidence in the company’s future and said he would stay invested for at most three decades. Mathieson, Australia’s 54th richest person, is a major investor at Endeavour. Endeavour operates a chain pubs and liquor stores including BWS and Dan Murphy’s.
Mathieson acknowledges that Star Entertainment Group faces a challenging road ahead but believes that the company can overcome these obstacles with the right people. Mathieson revealed that he does not want to invest in successful businesses but prefers to invest only in those that are in trouble and will need his help to succeed.
Star Entertainment Group Seeks Investor Support for Equity Raising Initiative
An NSW inquiry last year found Star Entertainment Group unable to manage its Sydney casino because of “cavalier risk management”. The company was allowed to keep its licenses and Queensland has not indicated that they intend to remove its permits.
Star Entertainment is also seeking investors to help fund an equity-raising effort worth AUD800 million (549.9 million). Oaktree Capital Management rejected Oaktree Entertainment’s offer for alternative funding. Barrenjoey Capital and Macquarie Capital were the bankers for Star Entertainment. They sought early support from large investors to help them repay their debts and keep their bankers away.
Star began to explore other avenues for bringing hundreds of millions of dollars into Oaktree after weeks of negotiations. Star recently reported that it could lose AUD1.6 billion ($1billion) from its NSW business. This led to a 41% decline in share price since December.