Macau businessman Wang Xing Chun has increased his stake in Star Entertainment to 5.5%, becoming the company's second-largest shareholder despite the Australian casino operator's financial struggles.

Wang recently purchased AU$1.7 million worth of shares, with acquisitions dating back to September 2024. According to Star's constitution and agreements with gaming regulators, individual shareholders are restricted from having more than 10% voting power in the company.

The timing is notable as Star faces severe financial challenges, with Morningstar analyst Angus Hewitt warning the company may struggle to reach its February 28 earnings report at current cash burn rates.

The Macau connection raises potential concerns, given Star's previous troubles stemming from anti-money laundering investigations related to former Macau junket operator Suncity. These investigations led to government intervention, with Australian authorities now operating Star's three main venues: The Star Sydney, The Star Brisbane, and the Star Gold Coast.

Wang Xing Chun, 61, is a Singapore resident with Belgian citizenship. While sharing a name with a Macau businessman previously connected to a Hong Kong-listed coal group, his specific identity and intentions remain unconfirmed by Star Entertainment. Currently, there's no evidence linking Wang to Macau's casino industry or its six concessionaires.

According to Morningstar's analysis, despite speculation about potential buyers, the likelihood of a rescue acquisition remains low.

Related Articles

Previous Articles