Australia’s Star Entertainment Group says it has successfully raised AU$595 million (US$401 million) following completion of the institutional component of its recently announced equity raising initiative.
The company confirmed via a Friday ASX filing that the institutional placement institutional entitlement offer raised a total of AU$595 million at AU$1.20 per new share, with “strong support from both existing shareholders and new investors” and a take up rate of approximately 94% under the entitlement offer. This included a previously announced AU$80 million (US$54 million) binding commitment from Star’s strategic partners, Hong Kong-based Chow Tai Fook and Far East Consortium.
Settlement of the new shares is due to take place next Monday 6 March, with the shares to commence trading from Tuesday 7 March, Star added.
“We are extremely pleased and appreciative of the support we have received from both our existing shareholders and new investors,” said Star CEO Robbie Cook.
“The capital structure initiatives announced [last week], including the Placement and Entitlement Offer, will provide The Star with a strengthened balance sheet to deliver on its key strategic priorities and to meet the capital requirements provisioned for.”
Star will now embark on an AU$205 million retail entitlement offer for eligible shareholders with registered addresses in Australia and New
The company announced its equity raising plans last week after reporting a net loss after tax of AU$1.26 billion (US$849 million), which included AU$1.31 billion (US$892 million) in “significant items” – mostly emanating from regulatory action taken against it for failings uncovered across recent inquiries in NSW and Queensland.
Star said last week that these significant items include “impairment of the Sydney property assets, penalties, costs associated with the regulatory reviews, contribution towards the Bell Review [and] accounting for software changes.”
