Star assures irate investors it has no intention of raising more money
Star Entertainment chairman David Foster has told investors the company had no intention to raise more money – “based on what we know today” – after finding $1.6 billion in new funds in the last seven months.
Mr Foster and Robbie Cooke, the casino operator’s chief executive, faced irate shareholders at the company’s annual meeting on the Gold Coast on Thursday after a difficult 12-month period. Star has written down the value of its casinos in Sydney, Gold Coast and Brisbane by $2.2 billion and faces major penalties after being sued by AUSTRAC for anti-money laundering failures. It also narrowly avoided losing its licence in NSW.
Star boss Robbie Cooke said the company remains committed to change. Louie Douvis
Star’s share price has fallen 70 per cent since Mr Cooke was appointed in October last year, and the company has been forced to raise $1.6 billion in that time. One investor at the meeting, former Rothschild investment banker David Kingston, told Mr Cooke he should be embarrassed by the share price performance, noting the company’s market value of $1.6 billion was almost an identical amount to money raised in February and September.
“The most bizarre thing is this [valuation] is marginally more than what you have raised,” Mr Kingston said. “Without the two raisings the company would have been bankrupt.”
Mr Cooke said the previous share price – the company traded higher than $5 per share in 2018 – was fuelled by “unlawful behaviour and criminals”.
“I’m not embarrassed, but I absolutely know it’s challenging. I feel the pain of shareholders every day,” Mr Cooke said. “I’m working seven days a week, 18 hours a day to resolve it. But this is not a quick fix.”
Star managed to avoid a second back-to-back remuneration
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