Sydney — Australian on line casino group Star Leisure stated on Monday it had agreed to an A$300m (about R3.5bn) rescue bundle from US group Bally’s that may hand over management of the embattled group.
The funding shall be made by means of multi-tranche convertible notes and subordinated debt devices, Star stated in an Australian Securities Alternate submitting.
The primary of the funds, about $A100m, shall be made by Wednesday, Star stated, that might allow the Sydney-based group to stay afloat.
The rest shall be paid after a Star shareholder vote and the deal receiving regulatory approval, the submitting stated. A shareholder vote is because of be held in late June, Star added.
Star stated the convertible notes would finally give Bally’s management of about 56.7% of the Australian firm on a totally diluted foundation.
The corporate added it was in talks with its largest shareholder, Australian billionaire Bruce Mathieson, to contribute about $A100m of the funding bundle. If that proceeds, Bally’s funding can be lowered to $A200m.
Sydney-based Star, Australia’s second-largest on line casino operator, has been scrambling to stave off chapter as years of regulatory scrutiny and lawsuits after cash laundering allegations have left it cash-strapped and with restricted lifelines.
Its shares stay suspended from buying and selling on the Australian Securities Alternate because it continues to be unable to lodge its half-year ends in the absence of an applicable refinancing proposal.
Reuters
