One of the world’s leading entertainment companies recognized for its “innovation, energy, and dedication to creating thrilling gaming experience,” Bally’s Corporation, has received endorsement from Star Entertainment Group’s largest shareholder in its bid to take control of the struggling Australian casino operator.
Billionaire Pub Baron Bruce Mathieson Supports Bally’s Offer
According to local reports, Bruce Mathieson has pledged his support for Bally’s proposal over competing offers.
Mathieson, who is a well-known name in the pub and poker machine industry and also carries a 10% stake in Star, has also decided to make a financial commitment of his own, along with Bally’s endorsement.
Namely, provided the deal moves forward, the 82-year-old born in Cobden, Victoria, will also allegedly invest an extra AU$50 million (US$31.5 million) to bolster Star’s finances.
The Australian Financial Review also claims the operator of Australian Liquor and Hospitality part of a joint venture with supermarket giant Woolworths, has already received regulatory approval to increase his stake to 20%.
His stake could grow even more, potentially securing a seat on the board should the Bally’s takeover be accepted.
Hong-Kong Partnership Prevents Star from Negotiating
Star has remained tight-lipped about Bally’s offer since confirming its receipt two weeks ago.
The company is currently bound by an exclusivity agreement with its Hong Kong-based partners Chow Tai Fook and Far East Consortium, who collectively own 50% of The Star Brisbane.
That agreement, which prevents Star from negotiating with other parties, remains in effect until March 25.
Bally’s bid, as previously reported by Inside Asian Gaming, stands at AU$250 million (US$158 million) for a 50.1% controlling stake in Star.
In addition to its financial investment, the American casino giant has emphasized its experience in turning around struggling gaming operations.
“We are Usually the Buyer of Last Resort”
Bally’s chairman Soo Kim remains confident in his company’s ability to revitalize Star’s assets, arguing that the group is worth more as a whole rather than being broken up and sold in parts.
“It is not too late. Our proposal is not subject to due diligence or consents or anything. We can do this. Every deal we’ve done, people say ‘There’s no value there, or it is too hard’. We are usually the buyer of last resort,” Kim told the Australian Financial Review.
He also took the opportunity to reiterate that their initial plan was “the best way to preserve shareholder value.”
“We look forward to working with Bruce to reinvigorate these great assets,” Kim added.
In the meantime, Star began exploring several fundraising alternatives, including the selling of selling of a series of non-core assets while looking to solve its liquidity issues.
