Become a Partner

Star Puts 105.9M-Share Interest Payment to October Vote

Star Puts 105.9M-Share Interest Payment to October Vote

The Star Entertainment Group wants to settle about A$11.9 million ($8.4 million) of interest without using cash. Shareholders will vote on a plan to issue roughly 105.9 million new shares to Bally’s and Investment Holdings.

The proposal appears in Star’s September 24 AGM notice. The meeting is scheduled for October 27. If shareholders approve the resolutions, Star plans to issue the shares the following day.

Bally’s would receive about 62.6 million shares against A$7.03 million ($4.9 million) of interest. Investment Holdings, controlled by the Mathieson family, would get another 43.4 million for A$4.87 million ($3.4 million). Dollar conversions use the Reserve Bank of Australia exchange rate for September 24.

Both allotments use a price of A$0.1123 ($0.079) per share. On the rounded figures, Bally’s takes about 59.1% of the proposed issue. Investment Holdings gets the remaining 40.9%.

A$11.4M Was Still Owed at June 30

The financing goes back to Star’s 2025 rescue package. Bally’s and Investment Holdings put A$300 million ($211.0 million) into the company through convertible notes and subordinated debt. The principal was later converted into Star shares.

Star’s FY26 annual report showed that some payment-in-kind interest was still outstanding at June 30:

  • A$11.4 million ($8.0 million) remained unpaid;
  • The interest rate was 9% a year;
  • Star had already elected in May to settle it with shares rather than cash.

The AGM papers put the combined liability at about A$11.9 million ($8.4 million) for October 27. That is about A$0.49 million ($348,000) above the June 30 balance.

There is no fixed stop at the October meeting either. Star says more shares will be needed if the issue takes place after October 28 because the interest keeps running.

Using A$11.9 million as the base, 9% comes to about A$1.07 million ($753,000) a year, or close to A$89,000 ($63,000) a month.

105.9M Shares Is About 1.6% of the Existing Total

Star had about 6.636 billion ordinary shares on issue at June 30. The proposed 105.9 million shares equal about 1.6% of Star’s existing share base. Or, more simply, around one new share for every 63 already on issue.

Bally’s held 2.5 billion Star shares at year-end, equal to 37.67%. Investment Holdings had another 1.537 billion, or 23.16%. Together, that was about 60.84%.

After adding the proposed interest shares, the two investors’ combined holding would rise to roughly 61.45%, assuming no other change in the share count before the issue.

Star avoids an A$11.9 million cash payment if the share settlement goes ahead, while the two rescue investors receive another block of equity. If shareholders vote against the resolutions, these shares are not issued. The interest remains outstanding.

.