The Star Entertainment Group, Australia’s leading integrated resort company, stopped trading its shares on the ASX (Australia’s Stock Exchange) just before the release of the report from the NSW Independent Liquor Gaming Authority (ILGA).
Ahead of ILGA’s Report, the Star Halted Trading on ASX
On Monday, the company requested to immediately cease trading its ordinary shares on the ASX, under listing rule 17.1. The Star pointed out that the trading halt comes after reports emerged in local media regarding the contents of the upcoming report that probed into The Star Sydney’s operations. Adam Bell SC is in charge of the report which was conducted under the Casino Control Act 1992.
“The trading halt is requested following media reports concerning the contents of the final report of the review of The Star Sydney undertaken by Mr. Adam Bell SC in accordance with the Casino Control Act 1992 (NSW).”The Star Entertainment Group
The leading operator acknowledged that it is yet to receive a copy of the report. The report itself isn’t public as well and is expected to be released on September 13, 2022. According to The Star, ceasing trading was “necessary as otherwise trading in securities may take place in an uninformed market.”
“The Star requests that the trading halt remain in place until the earlier time of the public release of the report referred to above and the commencement of trading on Wednesday 14 September 2022,”added The Star
The Probe Launched amid Allegations for Money Laundering
Only recently The Star released its financial results for the 2022 fiscal year. Then, late last month, the company reported a drop in its shares. Despite the successful fiscal year 2022, The Star acknowledged its shares dropped by 0.86%.
In FY2022, the company completed multiple executive-level changes. However, its biggest issue was the probe which came after allegations of anti-money laundering breaches and illegal transactions, among other breaches. As a result, The Star Sydney was urged to implement necessary methods for control to ensure compliance with the rules. At the same time, it is yet to be confirmed whether the venue will retain its license. The report expected to be released this week will likely shed some light on the topic.