The Star Entertainment Group Limited has announced that JPMorgan Chase & Co. and its affiliates have fallen below the threshold of substantial shareholding, following a reduction in their stake on September 10.
Shareholding Update Filed with ASX
In a filing to the Australian Securities Exchange (ASX), The Star confirmed that it had been notified of the change, in line with Listing Rule 3.19, which requires companies to disclose movements in substantial shareholdings.
The update means JPMorgan Chase & Co. is no longer considered a substantial shareholder in the Australian casino and hospitality group.
Exit Comes During a Challenging Period
The timing of JPMorgan’s reduced stake coincides with a turbulent stretch for The Star, which continues to grapple with regulatory scrutiny, financial pressures, and legal disputes.
- In its Q4 results, the company reported AUD 270 million ($175 million) in revenue but also posted an EBITDA loss of AUD 27 million ($17.5 million), a deeper loss than the prior year.
- Shares in The Star dropped sharply after the company failed to finalize the sale of its interest in the Destination Brisbane Consortium (DBC).
- The group also struggled to secure lender waivers, leaving it exposed to potential breaches of debt covenants amid disagreements with creditors.
- Adding to its woes, a Chinese-born billionaire filed a AUD 57 million ($37.2 million) lawsuit against The Star Sydney, alleging the casino exploited his gambling addiction and language barriers, leading to heavy losses.
Outlook
While The Star continues efforts to stabilize its operations and restore investor confidence, the withdrawal of JPMorgan Chase & Co. as a substantial shareholder underscores the uncertain environment facing the company as it navigates financial restructuring, regulatory challenges, and ongoing litigation.
