Star Entertainment Shares Dip amid Financial, Trading Woes

The Star Entertainment Group, Australia’s embattled casino operator, saw its share price dip amid potential delays in the release of its recent financial report and threats about a temporary trading halt on the ASX.

Star Entertainment Looks for Liquidity Proposals

The troubled operator released a statement Thursday revealing that one of its substantial shareholders decreased its interest in the company. That’s the case for State Street Corporation, which decreased its ownership from 177,173,859 to 147,973,815 ordinary shares.

On Friday, The Star confirmed that it is expected to release its half year financial report for the period ended December 31, 2024, today. However, the company wrote: “It is likely that the 1HFY25 Report will only be able to be finalized if the Company has received liquidity proposals which, after appropriate consideration by the Directors, are sufficiently capable of being progressed to finalization in the context of determining whether the Company can continue as a going concern.”

Notifying its shareholders, The Star confirmed that unless the financial report is released on Friday, the company’s shares may be temporarily suspended from trading on the ASX, as per the Listing Rules. That would be the case effective from Monday, March 3, 2025. A potential suspension would remain in place until the release of the financial report and “the ASX determines that the Company’s shares should be reinstated to quotation.”

“Shareholders should note that if the 1HFY25 Report is not lodged later today as required by the ASX Listing Rules, then the Company’s shares will be automatically suspended from trading from Monday, 3 March 2025,“

reads a statement released by The Star Entertainment Group

Debt Financing Can Help the Troubled Operator

The hurdle The Star is facing immediately impacted on its share price on the ASX, which took a dip of 15.38% to AU$0.11 on Friday. The decrease in the last five days is approximately 21.43%. In addition, The Star’s shares as of Friday marked the lowest point in the last six months, down by 56.00%.

Recent reports suggested different companies may be interested in helping the troubled Aussie casino operator. That’s the case with Bally’s Corporation, the leading gaming and hospitality company that reportedly considers an investment in The Star as a way to help the company out.

Earlier this month, The Star confirmed it received a debt financing proposal from Oaktree Capital Management. However, at the time of writing, the former hasn’t confirmed if it has found a possible liquidity solution.