Posted on: January 13, 2025, 09:58h.
Last updated on: January 13, 2025, 09:58h.
Macau businessman Wang Xing Chun has been gobbling up shares of Star Entertainment even as the Australian casino operator is pushed to the brink of solvency.
After recently acquiring AU$1.7 million worth of Star shares, Wang’s stake in the company reached 5.5%, prompting a disclosure with Australian regulators. A Friday filing with the Australian Securities Exchange (ASX) confirmed the investor has been buying the stock since September and he’s now the second-largest shareholder in the embattled gaming entity.
The Company’s Constitution, as well as certain agreements entered into with Liquor and Gaming New South Wales and the Queensland Office of Liquor and Gaming Regulation, contain restrictions prohibiting an individual from having a voting power of more than 10% in the Company,” according to a Star regulatory filing. “The Company may refuse to register any transfer of shares which would contravene these shareholding restrictions or require divestiture of the shares that cause an individual to exceed the shareholding restrictions.”
News of Wang’s stake in Star emerged just days after it was revealed Star is burning cash a rapid rate with Morningstar analyst Angus Hewitt noting that based on current burn rates, the gaming company will be fortunate to make to its Feb. 28 earnings report.
Star/Macau Connection Could Raise Red Flags
While Wang’s plans for his stake in Star aren’t yet known, the mere inklings of ties between the casino operator and Macau could be problematic in Australia.
Star’s demise has been fostered in large part by lengthy anti-money laundering probes that stem from the gaming company’s involvement with former Macau junket operator Suncity. Two years ago, Suncity founder and CEO Alvin Chau was convicted on charges of having ties to criminal groups and illegal betting. He was sentenced to 18 years in prison.
It’s not known if Wang has or previously had ties any Macau junket operators, including Suncity.
Due to the regulatory inquiries, Star is at risk of losing control of its flagship venue, The Star Sydney. That venue has been run by the Australian government since 2022. Star’s other two venues, The Star Brisbane and the Star Gold Coast, are also run by the government.
More Details on Wang
There aren’t a lot of details on Wang Xing Chun, but according to Forbes, he’s 61 years old, lives in Singapore, and has citizenship in Belgium.
“Mr. Wang’s intentions remain unclear. The company could not immediately confirm his identity, although his shares are registered to an address in Macau,” reports The Australian Financial Review. “The purchaser of the Star stake shares a name with a Macau businessman connected with a Hong Kong-listed coal group and, more than a decade ago, described as one of the richest men in China.”
As of yet, no details have emerged that Wang has ties to the Macau casino scene or any of the six concessionaires in the territory. Any of those firms could be logical suitors for Star, but Morningstar’s Hewitt said the likelihood of a white knight emerging for the Australian company is low.
