Bruce Mathieson Buys 10% Stake In Star Entertainment
Star Entertainment Group has a new major shareholder. Various reports announced late last week that pokies magnate Bruce Mathieson had purchased a 9.97% stake in the company. The stake is worth around $147 and makes him one of the largest shareholders in the company. Mathiason believes that his purchase has long-term value despite the casino company’s uncertain future.
Bruce Mathieson Purchases 9.97% Stake In Star Entertainment Group
On Friday, news broke that pokies magnate Bruce Mathieson has acquired a significant stake in Star Entertainment Group. A report to the Australian Securities Exchange Ltd (ASX) reveals that Mathieson has bought a 9.97% stake in Star Entertainment worth approximately $147 million.
According to the report, he began purchasing shares on February 15th and has paid an average of $1.49 per share. He purchased the stock through Ord Minnet, a company in which Mathieson is a part owner. His last purchase was last Tuesday.
Mathieson’s purchases put him right at the 10% limit imposed by regulators. These limits came following investigations last year into various violations of money laundering laws by the casino. The casino was fined $100 million last year for those violations.
Mathieson Believes His Purchase is Good Value
Mathieson spoke on his purchase of stock into Star Entertainment earlier this week. He told The Sydney Morning Herald, “I wouldn’t be buying it unless I thought it was good value. I like the assets of the company. I like the industry, and I just think it’s something that [as] a long-term holding for my family will be great.”
He was quoted in The Financial Review as stating, “It’s a simple thing. In my opinion, it’s a wonderful asset to have. I don’t think there’ll be any more casinos in NSW. And you can’t build a casino every couple of weeks, unlike other investments like high-rise buildings. I can guarantee I’ll be there in 30 years. It’s a big long-term holding for my family.”
Mathieson understands that it will not be smooth sailing for the company, stating that they have a “rocky road” ahead of them. He says that part of the company is turning around its people. He stated that if you “put the right people together, you get through, and that’s something I would certainly like to play a part in. That’s the thrill of it.”
Investment Likely to Be Controlled by Bruce Jr
While Mathieson states he plans to be part of Star Entertainment for many years, the reality is likely that his son will be the one holding the shares. The pokies magnate is 78 and has been showing signs of slowing down.
Mathieson stepped down from the Endeavor Group board in 2022, and now his son, Bruce Jr, is the person in charge of the family’s $1.8 billion stake. As such, it is likely that Bruce Jr will be the one calling the shots for the Star shares.
The Mathieson family has made its fortune off of pokies and currently operates five companies in Australia tied to the market. It is likely that a family member will receive a seat on the Star Entertainment Group. The company operates nearly 4,899 pokies across three casinos. Should one of the family members join the board, the family will be officially involved in nearly 10% of all pokies in Australia.
The purchase of 10% of Star shares by Mathieson could be viewed as a gamble. It could also be viewed as a hefty vote of confidence on the future of the casino. Time will tell whether this will be one of Mathieson’s wiser decisions.
