Star Entertainment Group shareholders give approval for $300m takeover offer from Bally's Corporation, Bruce Mathieson
Star Entertainment Group's chair issued a desperate plea to shareholders before they voted in favour of a $300 million takeover bid from US giant Bally's Corporation to avert collapse.
More than 98 per cent of Shareholders of Star voted to approve two key items on the agenda at the company's meeting on Wednesday which were necessary to handing Bally's, alongside publican Bruce Mathieson, control of the company.
Star confirmed in April it was accepting the takeover deal as the company limped on its last legs with little cash reserves and mounting debts.
Prior to the deal getting the green light, Star's chair Anne Ward urged shareholders to vote in favour of the takeover deal after being plagued by financial troubles in the lead up to the announcement of the deal.
'The Star and its advisors have pursued a range of funding options with an increasing degree of urgency over the last 12 months, including asset sales and a variety of recapitalisation proposals,' Ms Ward said on Wednesday.
'But as the independent expert said, the Star and its advisors have essentially exhausted all options.
'The strategic investments are the only remaining funding solution available'.
Bally's will control 38 per cent of Star while Mr Mathieson's Investment Holdings will take about 23 per cent.
While shareholders have approved the takeover deal that saved the casino operator, its future still hangs under a dark cloud as financial strains and a looming $400m fine from AUSTRAC over money laundering breaches plague the company.
Ms Ward noted these challenges in her address to shareholders and stressed the backing of Bally's and Mr Mathieson was critical to ensuring its future.
'As shareholders will be aware, The Star is facing significant uncertainty regarding its ability to continue as a going concern, amid a challenging operating environment and several claims, including awaiting judgment in the civil proceedings launched by AUSTRAC, the hearing of which concluded on 11 June 2025,' she said.
'The strategic investments by Bally's and Investment Holdings provide cash funding and assist The Star's ability to continue as a going concern, helping to avoid outcomes such as voluntary administration, which is likely not to be in the best interests of shareholders.'
The company was forced into a trading halt earlier this year after it failed to publish its financial results by its deadline due to its dire position.
It was finally able to publish its results after receiving the offer from Bally's Corporation and Mr Mathieson that injected $100m of short-term cash into Star.
Star in April revealed revenue was down more than 16 per cent for the first half of the 2025 financial year.
It also reported a $21m loss for the first three months of this year as dwindling visitor numbers, gaming restrictions and ex-Tropical Cyclone Alfred plagued the embattled casino operator.
Earlier this week, Star revealed several new appointments as it looks to rebuild its business.
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