As The Star Entertainment Group’s next General Meeting approaches, the company asked its shareholders to consider Bally’s Corporation’s proposed takeover. The company leadership encouraged investors to greenlight the deal, highlighting that no better opportunity exists at the moment.
The Star Shareholders to Vote on Bally’s Proposal
In an ASX release published yesterday, The Star Entertainment confirmed that its General Meeting will take place on June 25, 2025. At that meeting, shareholders will be asked to consider Bally’s outstanding offer to take over the Australian operator’s business.
Under the proposal, the American gambling giant and Investment Holdings will invest AUD 200 million and AUD 100 million, respectively, in The Star Entertainment. If approved, the agreement would see 278,517,860 convertible notes issued to Bally’s and 139,258,930 convertible notes issued to Investment Holdings.
The agreement will provide the embattled Australian operator with much-needed funding and will effectively put Bally’s in charge. This arrangement is therefore poised to finally allow The Star Entertainment to recover from the devastating aftermath of the regulatory trouble it faced in its home market.
The Star Asked Investors to Approve the Deal
The Star Entertainment’s leadership encouraged investors to approve the arrangement, arguing that a better proposal does not exist at the moment.
The directors of The Star unanimously recommend that shareholders vote in favour of the Strategic Investments Resolutions, in the absence of a superior proposal and in the absence of the Independent Expert changing its opinion (which is set out in the Explanatory Memorandum). The directors of The Star also unanimously recommend that shareholders vote in favour of the Placement Capacity Refresh Resolutions.
The Star Entertainment Group statement
For context, the Australian casino company was previously eyeing a similar arrangement with Salter Brothers Capital. However, these negotiations fell through in early April, paving the way for the current deal.
Bally’s Asks The Star Entertainment to Review Its Operations
In the meantime, Bally’s just asked The Star Entertainment Group’s board of directors to review the company’s strategic, financial and commercial operations in case investors approve the transaction.
In an explanatory memorandum, Bally’s elaborated that it expects a review that properly evaluates the performance of the Australian company. The US casino operator said that this review would allow it to create a plan to better help The Star overcome its continued financial and regulatory hurdles.
In the meantime, Bally’s remained confident that it would be able to “implement a turnaround that preserves The Star’s long-term potential,” should the latter company’s shareholders greenlight the deal. The Star hopes that Bally’s will leverage its track record of revitalizing underperforming casino businesses to provide its business with the help it needs.