Star Entertainment In Huge Debt: Raises $545 million & Suspends Dividends

Home » Star Entertainment In Huge Debt: Raises $545 million & Suspends Dividends
Star Entertainment group Sydney Australia

Star Entertainment Group Ltd. (SGR.AX) have found themselves in a pothole of debt. The humongous Australian gambling and entertainment company has thereby suspended dividend payments as a counter-measure.

The Australian-based group will be raising AUD $800 million (USD $545 million) in order to bail themselves out of the pool of debt they are in. Star Entertainment have been going through a perilous time as they logged a net loss of AUSD $1.26 billion in the first half of 2022. The previous year they had registered a loss of AUSD $74.2 million.

What caused the downward spiral of Star Entertainment?

One of the main reasons why Star Entertainment Australia has been in danger waters now is the tough business conditions of Sydney, Australia. The regulatory restrictions on Sydney have acted as a major obstacle for Star Entertainment.

Another reason included tough and stiff competition from rival counterparts Crown Resort. Notably, Crown Resort had started their business operations in Sydney in August 2022 and have been leapfrogging Star Entertainment in terms of profit margins.

How can Star Entertainment pull themselves back?

The capital raising will definitely bail Star Entertainment out of this precarious situation. It encompasses a AUD $685 million 3-for-5 rights offer and a AUD $115 million institutional placement.

Speaking about the problem, the company officials divuldged some details.

“The half-year financial results included a $1.3 billion in what we would describe as one-off costs, like the expected changes to taxes, $350 million in fines and the expense of ongoing reviews and new systems to fix problems. The poor performance is reflective of increasingly restrictive operational requirements and amendments to the state’s Casino Control Act,” said the officials of Star Entertainment.

The officials also added that some of the major shareholders in the form of Chow Tai Fook Enterprises and Far East Consortium have taken up their respective rights entitlements and have contributed to $80 million to the raise.

Star Entertainment will also sell shares

Another way to tackle the debt crisis, Star Entertainment has revealed that they will be selling their shares in order to get back into shape. The current price of the shares is AUD $1.20 per share.

Notably, this is one of the lowest share prices of Star Entertainment in recent times. It is 21% below Star Entertainment’s most recent share price of AUD $1.52. This naturally highlights the tough conditions which the company is presently going through in the share market of Australia.

Read More:

Similar Casinos

100% on first Deposit Upto ₹50,000

Four Deposit Bonuses Matched Between 270-360%

500% Welcome Bonus up to 1Lakh on first 4 Deposits

Best Betting Exchange

Welcome Bonus up to ₹ 34,000 + 250 Free Spins

Reviews


250% Bonus Up To ₹5000


30% on first Deposit upto ₹3,000

100% Welcome Bonus upto ₹25,000

on First Deposit

Four Deposit Bonuses Matched Between 270-360%

100% Welcome Bonus up to ₹50,000

on First Deposit

>Get300% Welcome Bonus Upto ₹15,000 On First 2 Deposits

Get Welcome Bonus

350% up to 1,00,000 + 300 Free Bet

on First Deposit

100% Welcome Bonus upto ₹11,000 

on First Deposit

Get Upto 5% Bonus on the First Deposit

Best Betting Odds in India

© 2024 Spinsvilla.com Owned and Managed by BVC eServices Private Limited (STRICTLY 18+ Gambling can be addictive. Play responsibly - Be Gambleaware, contact GameCare for support)
error: Content is protected !!