According to official meeting documents, the review is intended to evaluate Star’s performance, identify operational efficiencies, and explore potential synergies between the two companies.
Bally’s also aims to help reposition the group through ongoing engagement with key stakeholders, including employees, regulators, and shareholders.
Shareholders to vote on A$300m funding package
The proposed investment forms part of a broader A$300m capital raising package, which includes a parallel A$100m commitment from Investment Holdings Pty Ltd, a vehicle associated with Australian businessman Bruce Mathieson.
Star shareholders are set to vote on both investments at a general meeting on 25 June, to be held in person at The Star Event Centre in Sydney and online.
The funding has been structured through multi-tranche convertible notes and subordinated debt instruments.
An initial A$100m was received in April 2025, split between Bally’s and Investment Holdings. The remaining A$200m will be advanced if shareholders approve the issuance of additional convertible notes, known as Tranche 2.
Lifeline for The Star
The investment comes at a critical moment for The Star, which has faced significant financial and regulatory pressure over the past year.Efforts to raise capital through alternative means, including negotiations with King Street Capital Management and Oaktree Capital, were unsuccessful due to regulatory and lender approval hurdles.
Star’s board says the Bally’s and Investment Holdings proposals are the only viable options currently available and have recommended shareholders vote in favour of all related resolutions.
The funding, they argue, is essential to the company’s solvency and avoid voluntary istration.
Independent expert endorsement
Independent advisory firm Grant Samuel, engaged by The Star to assess the transaction, concluded that the investments are “reasonable” for shareholders not associated with either Bally’s or Investment Holdings.
While the expert noted that the deal is “not fair” under technical regulatory definitions — due largely to the absence of a control , an extra amount paid on an investment for gaining control of a business — it stated clearly that shareholders would be “better off if the Strategic Investments proceed than if they do not.”
What happens next?
If shareholders approve the resolutions and regulatory approvals are secured, the Tranche 2 Convertible Notes are expected to be issued by 27 June 2025.
The Star has encouraged shareholders to vote either online or by proxy by 23 June 2025. Participation is open both in person and via the online meeting platform.
