Star talks up renewal but at a much lower share price after 16 per cent plunge
Shares in casino operator The Star Entertainment Group fell as low as 62 cents, a drop of 16 per cent, today after they returned to trade on the ASX following its debt and equity raising this week.
Robbie Cooke, CEO of Star Entertainment. (AAP Image/Dan Peled)
The stock recovered a little during the day but is now down 75 per cent on its level a year ago.
Star said it raised a total of $565 million with a take-up rate of 67 per cent. It was reported that pub baron Bruce Mathieson did not take up his entitlement after jumping in previously at $1.20.
Star said it received “significant interest” from institutional shareholders and new investors.
Chief executive Robbie Cooke said the company was pleased with the result.
“The refinancing and further capital structure initiatives announced yesterday represent a key milestone in the renewal at Star,” he said.
“With a strengthened balance sheet and additional flexibility we have a strong platform from which to deliver on our renewal program and strategic priorities.”
The retail offer will open on October 3 and close on October 12.
