Pubs baron Bruce Mathieson has taken advantage of a slump in The Star Entertainment Group’s (ASX: SGR) shares to lift his stake back up to just under 10 per cent of the casino operator.
Mathieson, and associated entities, this week acquired an extra 39.6 million shares for more than $18.4 million as the company’s shares hit a record low of 40.7c this week as the second Bell inquiry got underway to determine the company’s suitability to hold a casino licence.
The acquisition of shares on 16 April has taken Mathieson’s stake in The Star to 9.59 per cent of the company, or a total of 275 million shares, up from 8.21 per cent previously.
The shareholding remains under the 10 per cent threshold at which point, The Star notes, it may refuse to register any transfer of shares in keeping with agreements entered into with Liquor and Gaming New South Wales and the Queensland Office of Liquor and Gaming Regulation.
The provisions place restrictions on individuals from having a voting power of more than 10 per cent in the company.
Mathieson and his son Bruce Jr had previously held a 9.97 per cent stake in The Star before share placements last year diluted their holdings.
The latest share splurge is seen as an opportunistic play after The Star’s shares took a savage hit this week following the start of a three-week inquiry being led by Adam Bell, SC, in his second review of the company’s suitability in as many years.
An explosive first day of witness testimony by Nicholas Weeks, the special manager appointed by the NSW Independent Casino Commission in November 2022 to oversee The Star’s remediation program, revealed a dysfunctional relationship between the regulator’s representative and former CEO Robbie Cooke.
The soured relationship was described at the inquiry as a “state of war” between Weeks and Cooke with the inquiry exposing how this has contributed to shortfalls by The Star in reaching its milestone targets to regain its casino licence suitability.
Mathieson, whose poker machine and pub empire is part of Endeavour Group (ASX: EDV),has previously revealed his investment in The Star would be a long-term holding.
Mathieson has taken a massive hit on his original investment in The Star, which totalled about $170 million prior to this week’s top-up, which takes his investment to more than $188 million.
Based on the current share price of The Star, Mathieson’s investment in the company is worth just $116 million.
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