SGR Successfully Completes Placement and Institutional Entitlement Offer, While Facing Shareholder Surprises"

The Star Entertainment Group Limited (ASX: SGR) has achieved a significant milestone by successfully completing its institutional placement and the institutional component of its entitlement offer, raising a total of approximately AU$565 million. However, the development comes with a surprise as the company's largest shareholder, Bruce Mathieson, did not participate in the equity raise, raising questions about the family's intentions.

Institutional Offer Success

The institutional placement and entitlement offer, which were offered at AU$0.60 per share, saw substantial interest from institutional shareholders and new investors. The take-up rate for the institutional entitlement offer reached approximately 67%, excluding ineligible shareholders. Settlement for the new shares is expected on October 5, 2023, with trading commencing on October 6, 2023.

Retail Entitlement Offer

The company also plans to raise approximately AU$185 million through the underwritten retail component of the entitlement offer. Eligible retail shareholders in Australia and New Zealand will have the opportunity to participate in this offer, with detailed information to be provided in a Retail Offer Booklet.

Bruce Mathieson's Surprise Move

Despite earlier expectations that Bruce Mathieson would participate in the institutional rights issue and placement, he did not exercise his entitlements. Mathieson, who owns nearly 10% of the company, was entitled to approximately 57 million shares but chose not to participate, sparking speculation about the family's future plans and potential regulatory considerations.

Conclusion

The successful equity raise represents a significant step in The Star Entertainment Group's capital restructuring efforts. However, the unexpected decision by its largest shareholder adds an element of uncertainty to the company's future direction, leaving investors and stakeholders eager to learn more about the Mathieson family's intentions.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com