Star Entertainment Announces JPMorgan Chase No Longer a Major Shareholder

JPMorgan Chase & Co. Withdraws as a Significant Stakeholder

The Star Entertainment Group Limited, a leading Australian casino operator, recently disclosed in a shareholders update that JPMorgan Chase & Co., the prominent American financial services firm, along with its affiliates, is no longer classified as a substantial shareholder of the company.

Regulatory Disclosure of Shareholding Changes

This update was communicated through a filing to the Australian Securities Exchange (ASX). It confirmed that JPMorgan Chase & Co. reduced its stake in The Star Entertainment Group below the threshold that mandates reporting under Listing Rule 3.19. The reduction took place on September 10, thereby altering the company’s register of significant shareholders.

Challenges Faced by The Star Entertainment Group

The Star Entertainment Group has been navigating a challenging environment marked by regulatory setbacks and financial difficulties. In its fourth quarter results, the company reported revenues of AUD 270 million (approximately USD 175 million) but also an EBITDA loss of AUD 27 million (around USD 17.5 million), signaling ongoing financial strain despite stable revenue compared to the previous year.

The company’s stock price was adversely affected following unsuccessful attempts to sell its stake in the Destination Brisbane Consortium. Furthermore, negotiations with lenders failed to produce covenant waivers, restricting The Star Entertainment‘s ability to manage debt terms amid escalating tensions with creditors.

Adding to its difficulties, a legal claim amounting to AUD 57 million (approximately USD 37.2 million) was filed against The Star Sydney by a Chinese-born billionaire. The lawsuit alleges the casino exploited the individual’s gambling addiction and language challenges, resulting in substantial losses.