It’s taken just 24 hours for The Star Entertainment Group (ASX: SGR) to find a new CEO with the announcement today that Bruce Mathieson Jnr would assume the top job while major shareholder Bally's Corporation appointee Soo Kim would become chairman.
Kim, the chair of Bally’s, replaces Bruce Mathieson Jnr who was temporarily appointed to the position of executive chairman yesterday after the company announced former group CEO Steve McCann would vacate the role effective immediately.
New CEO Mathieson had previously been non-executive chair of The Star since 1 December following the resignation of Anne Ward.
The appointments of both Soo and Mathieson signal the final phase of the partial buyout of The Star by Bally’s and Mathieson company Investment Holdings Pty Ltd.
Between them, the investors control just under 61 per cent of the shares on issue by The Star thanks to a $300 million rescue package via a convertible notes issue.
Bally’s controls 2.5 billion shares, or about 37.6 per cent of the company, while Investment Holdings has 23.16 per cent of the stock.
Kim was the architect of the planned buyout of The Star when Bally’s first put forward a debt-based rescue proposal totalling $250 million in March this year.
Pubs baron Bruce Mathieson Snr, a major shareholder of The Star at the time, later put his hat into the ring to the tune of $100 million that led to a revised $300 million convertible notes offer from both parties.
Mathieson Jnr is a former non-executive director of hotels owner Endeavour Group (ASX: EDV) as well as former CEO of ALH Group before its merger with Endeavour.
The Star says that Mathieson Jnr’s appointment as CEO is still subject to agreement of final documentation, while he will also remain on the board as an executive director.
The terms of the employment agreement as CEO are expected to be announced once they are finalised.
In the wake of Soo’s appointment, non-executive directors Hodgson and Toni Thornton have resigned from The Star’s board.
This leaves just Kim, Mathieson Jnr and Bally’s president George Papanier on The Star’s board.
“We are fortunate to have Bruce lead our company as CEO,” says Soo in a statement to the ASX.
“George and I understand what an honour and responsibility it is to join and contribute to the board. We are confident our best days are ahead.”
The Star yesterday revealed that despite standing down as CEO, McCann has agreed to remain available to assist the company through a handover period until 8 July 2026.
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