US casino operator Bally’s Corp has called on the Board of Directors of Australia’s Star Entertainment Group to conduct a “broad-based general review of The Star’s strategic, financial and commercial operations” should its proposal to invest a share of AU$300 million (US$195 million) to help salvage the embattled company be approved by shareholders.
Further details of the proposal were outlined in an Explanatory Memorandum issued to shareholders on Monday ahead of a General Meeting scheduled for 25 June.
The memorandum also revealed that an independent expert tasked with reviewing the investment proposal had found shareholders would be better off if they vote yes than if they do not. The AU$300 million proposal, which includes AU$200 million (US$130 million) from Bally’s and AU$100 million (US$65 million) from local pub baron Bruce Mathieson’s Investment Holdings Pty Ltd, is seen as the final opportunity for Star to stave off insolvency.
