U.S. bank JPMorgan Chase & Co JPM.N has become a major shareholder in Star Entertainment SGR.AX, a stock filing showed, as shares of the embattled Australian casino operator have fallen sharply in recent years amid liquidity problems.
JPMorgan became a shareholder with 5.47 percent voting power, the filing showed Thursday.
Star shares have been on a downward trend since 2022 after facing multiple investigations into anti-money laundering violations, and have lost nearly 50 percent this year. The stock fell 52 percent and 66 percent in 2022 and 2023, respectively.
The company’s shares were trading almost 2 percent lower at A$0.255, at 0055 GMT.
In its delayed annual results released last week, Star said it may divest assets for ongoing restructuring activities and address capital outflows related to regulatory matters.
The gaming company’s corporate lenders had also agreed to provide a new credit facility of up to A$200 million ($137.00 million) with an immediate injection of A$100 million.
Earlier this year, Australian asset manager Perpetual PPT.AX increased its stake in the cash-strapped company.
Prior to that, Star claimed that Hard Rock Hotels & Casinos was considering a bid, but the Florida-based chain denied any involvement in a takeover bid.
Star’s future is currently at stake after an investigation found the casino operator had been experiencing issues related to its leadership and culture, and remains unfit to operate its Sydney casino.
Last week, Star responded to the New South Wales regulator’s show cause notice, addressing its suitability to hold a casino licence.
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