Billionaire pub baron Bruce Mathieson is looking to bolster his stake in the casino sector, applying to the regulator to increase his already substantial holding in the troubled Star Entertainment.
Principle investor in Endeavour, keeper of the country’s largest pub group and operator of EGMs, Australian Leisure & Hospitality (ALH), Mathieson is said to have a fortune exceeding $2.1 billion, according to the AFR’s Rich List.
In February this year he bought a 9.97 per cent stake in Star for $141.7 million, indicating his long-term intentions by stating he would “guarantee” he will be an investor for the next three decades, as the company sought to begin an extensive turnaround plan.
Sources report Mathieson soon wrote to the Independent Casino Commission, the casino regulator in NSW, asking to increase his holding.
The regulator notes approval is required for any investor to own greater than 10 per cent of the company as it makes them a ‘close associate’ under the state’s regulations, which can include directors, managers, executive officers or even a company that holds the licence.
The process has the applicant undergo a probity assessment that “interrogates” their financial background and stability, business dealings and character, and can take weeks or even months.
Recently appointed close associates at Star are chief control officer Ravneet Townsend and GM of electronic gaming Peter Humphreys.
Even if approval is granted, there is no guarantee Mathieson will increase his stake, but he is the largest shareholder to apply to be a close associate.
Star was looking at multiple class actions, a hefty tax bill, and allegations by AUSTRAC of it breaching anti-money laundering laws, for which it has provisioned $150 million, even though the financial crimes watchdog hit Crown Resorts with damages of $450 million.
Mathieson’s investment is said to have come at a crucial time, as the company looked to save $100 million annually, prompting April’s announcement of the potential sale of its Sydney casino, which would mean the loss of 500 jobs.
Since February tensions have eased somewhat, with Star looking to refinance its debt, and the NSW government recently scrapping a change that would have increased the upper EGM tax rate to over 60 per cent.
Star Entertainment (ASX:SGR) is projected to release its FY23 results before the end of August.
After a high of $1.79 in January, SGR shares closed today at $0.975, representing a fall of 77 per cent from its late 2021 high of $4.22.
