Shareholders of The Star Entertainment Group have approved a strategic investment from Bally’s Corporation and Investment Holdings, which has an aggregate principal value of AUD $300m (approximately USD $195m).
Entering a binding term sheet with Bally’s and Investment Holdings back in April, the Australian casino operator’s shareholders approved the strategic investment as part of a vote during the company’s general meeting on 25 June.
The approval comes as The Star makes significant changes to its executive management team, in addition to subsidiary director appointments, including Jennifer Cronin as Interim CEO of The Star Gold Coast and as a Director of the casino’s licence, The Star Entertainment Qld Custodian Pty Limited.
Bally’s deal receives shareholder approval
During the operator’s general meeting on Wednesday, The Star’s shareholders voted on four topics.
These were: approval of the acquisition of relevant interests in The Star’s Shares by Bally’s; approval of the acquisition of relevant interests in The Star’s Shares by Investment Holdings; approval and ratification of prior allotment and issue of Tranche 1A convertible notes; and approval and ratification of prior allotment and issue of Tranche 1B convertible notes.
Each vote received over 98% approval from The Star’s eligible shareholders.
Bally’s acquisition received a 99.36% approval, Investment Holdings’ acquisition received a 99.17% approval, while approval and ratification of prior allotment and issue of Tranche 1A and Tranche 1B convertible notes received 99.15% and 98.83% approval, respectively.
In an address to shareholders before voting took place, The Star’s Chair, Anne Ward, stated that the uncertainty regarding the operator’s ability to continue is a “going concern, amid a challenging operating environment”, and other claims, including its civil proceedings judgment launched by AUSTRAC that concluded on 11 June.
Ward highlighted that the investments from Bally’s and Investment Holdings “provide cash funding and assist The Star’s ability to continue as a going concern”, helping to avoid potential voluntary administration.
The Star’s Chair also mentioned the evaluation of its appointed independent expert, Grant Samuel, who concluded that while each of the investments is “not fair”, shareholders would still “be better off” if these investments proceeded.
Wholesale executive changes
As previously stated, The Star has made wholesale changes across its executive management team, alongside subsidiary director appointments, as part of a suitability push.
In addition to Cronin as Interim CEO of The Star Gold Coast and as a Director of The Star Entertainment Qld Custodian Pty Limited, other appointments include Rowene Craze as Group Chief Risk Officer, Patrick McGlinchey as Group Chief Legal Officer and Sarah Derry as Chief People Officer.
Peter Meliniotis has also been appointed as Group Chief Information Officer, while Helen Galloway has been named Independent Chair of The Star Sydney.
Commenting on the appointments, Steve McCann, Group CEO and Managing Director, commented: “I am pleased to finalise these key appointments for The Star.
“These appointments add to the depth of experience and talent at the Board and executive level and are a key step in The Star’s progress to suitability.”
Appointment details
Subject to all regulatory and ministerial approvals, Cronin will act as interim CEO of The Star Gold Coast for a maximum of 12 months while the operator continues to look for a permanent CEO.
For a three-year term, Cronin’s appointment as a Director of The Star Entertainment Qld Custodian Pty Limited has been facilitated by the company’s continued property decentralisation while its new governance framework is embedded.
The framework is being implemented as agreed with the New South Wales Independent Casino Commission (NICC) and the Queensland Office of Liquor and Gaming Regulation (OLGR).
Cronin brings significant hospitality industry experience to the roles, having previously worked as President and CEO of Wharf Hotels, Marco Polo Hotels and Niccolo Hotels in Hong Kong with 17 hotels located across China, Hong Kong SAR and the Philippines.
Craze was formerly The Star’s Group Chief Audit Officer, leading its Internal Audit and Regulatory Assurance.
Now Group Chief Risk Officer, Craze brings governance, risk and compliance experience to the position, as she previously was in charge of those areas as a National Partner for KPMG. She also has internal audit and risk leadership knowledge from her time at financial services, corporates and mining organisations.
McGlinchey previously served as interim Group Chief Legal Officer with responsibility for all legal and corporate governance matters. With 30 years of experience, he was previously Chief Legal & Risk Officer and Co-Company Secretary at The Lottery Corporation and Tabcorp.
Derry brings more than 30 years of industry knowledge to The Star, having run her own business in addition to being CEO of Accor Pacific. Derry has been with the operator since March but has now received regulatory approval for her appointment, meaning she will move into her role as Chief People Officer full time from 1 July.
With more than two decades of technology advisory and implementation services experience, Meliniotis has been with The Star since January this year as Group Technology Transformation Executive. He will now step into the role of Group Chief Information Officer.
With a decade of governance role experience, Galloway will take up the role of Independent Chair of The Star Sydney for an initial three-year term once regulatory and ministerial approvals have been received.
Since 2023, she has been an independent member of each of the Compliance Committees of The Star Brisbane, The Star Gold Coast and The Star Sydney. She is currently the Chair of Bank of us (B&E Ltd) and a Director of Hockey Australia.
