Aussie Pokie Tycoon Acquires Major Stake in Star Entertainment Group

The company has been facing financial difficulties and a drop in its share prices. Mathieson, with his sharp business acumen, has seen a long-term potential for growth and development in Star Entertainment Group and invested a whopping AUD142 million ($96 million) to acquire his stake in the company.

Bruce Mathieson plans long-term investment in Star Entertainment Group

Although his plans for the shares remain uncertain, Bruce Mathieson has expressed confidence in the company’s ability to recover and thrive. However, regulatory approvals and background checks are required before he can exercise his voting rights, as per the company’s Constitution and agreements made with Liquor and Gaming New South Wales and the Queensland Office of Liquor and Gaming Regulation.

With a personal fortune estimated at $2.5 billion, Mathieson is among the wealthiest individuals in Australia. He is also known for being the largest poker machine operator in the country through his ownership of hotels group ALH, a partnership with the popular supermarket chain Woolworths.

In a statement for The Australian Financial Review, Mathieson outlined his plan to establish a long-term investment in Star Entertainment Group. He has a strong faith in the company’s assets, which include the sprawling Sydney flagship casino, the Queen’s Wharf development in Brisbane, and the Gold Coast property. Mathieson also expressed his confidence in the company’s potential and stated his intention to stay invested for at least three decades. Ranked as the 54th wealthiest individual in Australia, Mathieson is a major investor in Endeavour, which operates a chain of pubs and liquor stores, including BWS and Dan Murphy’s. 

Despite acknowledging that Star Entertainment Group faces a difficult road ahead, Mathieson believes that with the right people, the company can overcome its challenges. Mathieson also revealed that he is not interested in investing in businesses that are already successful but instead prefers to invest in companies that have been experiencing some difficulties and need his expertise to help them thrive.

Star Entertainment Group Seeks Investor Support for Equity Raising Initiative

Last year, an NSW inquiry found Star Entertainment Group unfit to run its Sydney casino due to “cavalier” risk management. However, the company has been allowed to keep its all-important licenses, and there is no indication from NSW or Queensland of an intention to strip the company of its permits despite the findings.

Additionally, Star Entertainment has sought investors to support an AUD800 million ($549.5 million) equity-raising initiative as it turned down Oaktree Capital Management’s proposal for alternate funding. The company’s bankers, Barrenjoey Capital, and Macquarie Capital sought early backing from major investors for a deal that would help the company repay its debt and keep its bankers at bay. 

After weeks of talks with Oaktree, Star explored other ways to inject hundreds of millions of dollars into the company. The company recently warned of an AUD1.6 billion ($1 billion) potential loss from its NSW business, leading to a 41% drop in share value since December.