Xingchun Wang hikes stake in Star Entertainment
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More news: Shares in Star Entertainment continued to rise in morning trade after Macau-based businessman Xingchun Wang increased his stake in the casino operator to 6.52%.
According to disclosure documents, Wang paid around $3.16 million for 28.7 million shares, at 11 cents per share, on Monday after the company's share price tumbled more than 40% last week.
Star shares were up 12% to 14 cents by 11:25am AEDT, having rebounded 13.6% on Monday.
Star Entertainment shares rebound on Macau investor stake
More news: Shares in Star Entertainment Group have jumped 12% to 14 cents each after the embattled casino operator disclosed late on Monday that Macau-based businessman Xingchun Wang has acquired a 5.52% stake in the company.
Star last week warned of a challenging cash position amid continuing difficult trading conditions, prompting analysts to warn the company could fall in to administration if it fails to secure financial help.
Macau investor takes 5.5% stake in Star Entertainment
The news: Macau-based businessman Xingchun Wang has emerged as a large investor in Star Entertainment Group just days after the embattled casino operator warned of a precarious financial position.
The numbers: Wang became a substantial holder in Star on 10 January, acquiring a total stake of 5.52% in the company, according to a stock exchange filing late on Monday. The shares were acquired between September 2024 and January 2025 at prices ranging from 25.78 cents to 11 cents.
Star shares, which have lost two-thirds of their value over the past 12 months, closed at 12 cents each on Monday.
The context: There were no further details on the investor’s identity, with Wang’s shares registered to an address in Macau. The investor shares the name of a director of Hong Kong-listed coal group Winsway Coking Coal Holdings.
Last week, Star warned of a challenging cash position amid continuing difficult trading conditions. The company drew down a $100 million tranche of a new loan facility in early December, but has struggled with asset sales necessary to draw down a second $100 million tranche.
The casino operator’s precarious finances following hefty penalties and suspension of its licence to independently operate the flagship Sydney casino due to compliance breaches.
The source: ASX announcement
