No, thanks! Star’s top investor Bruce Mathieson skips on $750m raise

Troubled casino operator Star Entertainment Group’s largest shareholder, Rich Lister Bruce Mathieson, did not tip into the institutional leg of its $750 million equity raise which has been pitched to investors as a complete reset of its capital structure, Street Talk can reveal.

Mathieson, who shot up to a 9.97 per cent stake earlier this year owns about 95 million shares and was entitled to nearly 57 million shares under the one-for-1.65 institutional rights issue.

Fund managers had expected Mathieson to take at least enough to avoid dilution, with early expectations he would tip in about $75 million via the institutional rights issue and the placement. However, there were question marks around his role in the latest equity raise on Wednesday evening, as reported by this column. If Mathieson can go above 10 per cent shareholding was open to question given it would require regulatory clearance.

It’s a surprising development and begs the question of what is the family’s next move.

Bruce Mathieson Jr, who has been the key decision maker for the family on Star, confirmed to Street Talk it did not take up the entitlements. However, he declined to comment on if the Mathiesons were working on an alternative proposal.

The institutional leg raised $565 million of the $750 million total, at 60¢ a share. The rights issue had a shockingly low takeup of 67 per cent.