Bally's gains 37.7% share in the process
International casino-entertainment company Bally's Corporation has invested $266m into ASX lister The Star Entertainment Group Limited with help from MinterEllison.
Bally’s investment secures for it a 37.7% share in the Australian entertainment and gaming company, equivalent to 2,500,000,000 ordinary shares. The transaction obtained gaming regulatory approvals from Queensland’s Office of Liquor and Gaming Regulation, Liquor & Gaming New South Wales, and the New South Wales Independent Casino Commission on 21 November.
“Securing regulatory approvals was crucial to delivering stability for The Star. This transaction is a prime example of US investment into Australia, reflecting the continued strength of cross-border capital flows and the appeal of well-governed US bidders in the Australian market”, said MinterEllison lead partner Con Boulougouris.
Per an ASX announcement released on Monday 1 December, Bally’s chairman Soo Kim and Bally’s president George Papanier have taken seats on The Star’s board. The Star chair Anne Ward resigned as a director, as did non-executive director Deborah Page AM.
Bruce Mathieson was named The Star’s board chair, and Peter Hodgson was elected The Star audit committee’s interim chair. Eirene Garnsey was named an additional company secretary for The Star.
“While we have been waiting for probity, over the last several months, a dozen members of our team have had a chance to observe operations, culture and governance. We now have our plan to actively support its governance, help strengthen operations, and contribute to a responsible and sustainable future for The Star,” Papanier said in a Bally’s press release.
Bally’s CEO Robeson Reeves said Ward and The Star group CEO Steve McCann had permitted Bally’s to conduct analysis in the background and prepare its action plan. The deal was initially signed on 7 April and approved at a general meeting of The Star’s shareholders.
MinterEllison’s team on the transaction developed a deal structure that secured immediate liquidity for The Star and prevented it from entering voluntary administration. It also tackled ownership restrictions under gaming and foreign investment laws.
Boulougouris led the team alongside senior associate Dean Zinn. The team consisted of lawyers from the M&A, finance, tax, FIRB and competition groups.
MinterEllison collaborated with US counsel Kirkland & Ellis and specialist gaming regulatory advisor Senet Group.
Bally’s is an NYSE-listed company that owns and runs 19 casinos in the US and one in the UK. The Star runs casino and resort properties in Sydney, Brisbane and the Gold Coast.
