{"id":332577,"date":"2024-10-07T15:54:58","date_gmt":"2024-10-07T20:54:58","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=332577"},"modified":"2024-10-07T15:54:58","modified_gmt":"2024-10-07T20:54:58","slug":"jpmorgan-buys-big-voting-block-of-star-entertainment-shares","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/jpmorgan-buys-big-voting-block-of-star-entertainment-shares\/","title":{"rendered":"JPMorgan Buys Big Voting Block of Star Entertainment Shares"},"content":{"rendered":"

JPMorgan Chase & Co. (NYSE: JPM) acquired a sizable equity stake in downtrodden Australian casino operator Star Entertainment.<\/p>\n

\"Star
Star Entertainment’s namesake casino Sydney. JPMorgan Chase took a stake in the Aussie gaming company. (Image: Star Entertainment)<\/figcaption><\/figure>\n

According to a recent filing with Australian securities regulators, the New York-based bank purchased 5.47% of the gaming company\u2019s voting equity. News of the JPMorgan investment arrived about a month after Star was booted from<\/a> the Australian Stock Exchange (ASX) for failure to release financial results as scheduled. Star is the largest publicly traded casino operator in that country.<\/p>\n

Amid mounting regulatory concerns, including questions about its suitability to hold gaming licenses, shares of Star have been in a tailspin for several years. Year-to-date, the stock is off about 50% following losing two-thirds of its value last year and 52% in 2022<\/strong>.<\/p>\n

JPMorgan hasn\u2019t commented on its plans for the Star investment, but it is clear the gaming company has immediate financing needs with which the bank and other investors could assist. For example, Star recently opened the multi-billion dollar Queen\u2019s Wharf project in Queensland<\/a> and it already needs cash — something the New South Wales government has balked at providing.<\/p>\n

Star Saga Continues, Could Sell Assets<\/h2>\n

News of the JPMorgan investment is the latest chapter in the ongoing Star saga. Last month, the company told investors it could sell various assets<\/a> in a bid to raise cash to stay afloat. It\u2019s not yet clear if the bank or other investors are pushing the casino operator to make divestments.<\/p>\n

\n

Amid a now lengthy anti-money laundering probe<\/a>, Star is at risk of losing control of its flagship venue, The Star Sydney. That venue has been run by the Australian government since 2022. Star\u2019s other two venues, The Star Brisbane and the Star Gold Coast<\/a>, are also run by the government.<\/p>\n<\/div>\n

Earlier this year, Star told regulators that it believes it\u2019s still not fit to run the Sydney property and that it\u2019d like to extend its agreement with the government for oversight of that integrated resort.<\/p>\n

In May, Australian media outlets reported that Hard Rock International — the gaming arm of Florida\u2019s Seminole Tribe — was interested in potentially acquiring Star. However, Hard Rock swiftly refuted<\/a> that rumor and there\u2019s been no public takeover chatter since then.<\/p>\n

Speculating on JPMorgan\u2019s Star Interest<\/h2>\n

It\u2019s not clear exactly what JPMorgan\u2019s plans are for its Star stake or if the bank is planning to be an activist investor<\/a>. Activist shareholders typically prod the companies in which they\u2019re invested to make changes \u2013 sometimes dramatic \u2013including asset divestments or outright sales.<\/p>\n

Star is ripe for any of the above and could be a compelling target for a suitor that\u2019s willing to work with the Australian government to put Star\u2019s regulatory woes to bed.<\/p>\n

It\u2019s also possible that Chase could team up with another Star investor to provide financing to the gaming company. Australian asset manager Perpetual took a stake in the operator earlier this year, but there are no indications as of yet that Chase and Perpetual are in discussions of any kind.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

JPMorgan Chase & Co. (NYSE: JPM) acquired a sizable equity stake in downtrodden Australian casino operator Star Entertainment. According to a recent filing with Australian securities regulators, the New York-based bank purchased 5.47% of the gaming company\u2019s voting equity. News of the JPMorgan investment arrived about a month after Star was booted from the Australian […]<\/p>\n","protected":false},"author":46,"featured_media":329410,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10,1],"tags":[81913,81903,81967],"class_list":["post-332577","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia-pacific-gaming","category-financial","category-rumors","tag-asia-pacific-gaming","tag-financial","tag-rumors"],"acf":[],"yoast_head":"\nJPMorgan Buys Big Voting Block of Star Entertainment Shares JPMorgan Buys Big Voting Block of Star Entertainment Shares<\/title>\n<meta name=\"description\" content=\"JPMorgan Buys Big Voting Block of Star Entertainment Shares.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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Investor Bruce Mathieson is said to be supportive of Bally's takeover bid. 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Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/332577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=332577"}],"version-history":[{"count":3,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/332577\/revisions"}],"predecessor-version":[{"id":332580,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/332577\/revisions\/332580"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/329410"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=332577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=332577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=332577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}