Australian billionaire Bruce Mathieson, one of the richest men in the country, recently made a bold new investment, acquiring a 9.97 percent stake in beleaguered operator Star Entertainment for a total consideration of US$96 million (AU$142 million), the company announced.
The acquisition makes Mathieson, who amassed his multibillion-dollar fortune via his Australian Liquor and Hospitality (ALH) pub empire, one of the largest individual Star shareholders.
He is also notably one of, if not the biggest poker machine (pokie) operators in the country, thanks to the vast number of machines spread across his bars and hotels.
Star’s trading price has hit all-time lows in recent weeks thanks to a combination of regulatory controversy and state-proposed tax increases in New South Wales (NSW), which, if enacted, could wipe hundreds of millions off the company’s balance sheet moving forward.
Despite the uncertainty, Mathieson maintained that his investment is long-term, telling the Sydney Morning Herald that he “wouldn’t be buying it unless I thought it was good value.”
“I like the assets of the company, I like the industry and I just think it’s something that [as] a long-term holding for my family will be great,” he added.
According to Star, the reason why Mathieson’s stake is officially 9.97 percent is because of certain regulatory requirements in NSW and Queensland which prohibit an individual from purchasing more than 10 percent without undergoing probity checks and similar approvals.
Mathieson is not slated to join Star’s board of directors, but told the Herald that he would be open to doing so if asked, and reiterated that “there are not many assets like [Star’s] in this field and in this country that I like.”
The recent acquisition may be a much-needed sign of good things to come for Star, which is currently attempting to get back into the good graces of regulators all over the country after being deemed to be unfit for licensure in numerous states over the past two years.
Additionally, the company is also entrenched in federal proceedings brought forth by financial watchdog agency AUSTRAC over repeated violations of anti-money laundering and counter-terrorism financing (AML/CTF) laws.
