(Reuters) – U.S. bank JPMorgan Chase & Co. (NYSE:) has become a major shareholder in Star Entertainment, a stock exchange filing showed. The share price of embattled Australian casino operator Star Entertainment has fallen sharply in recent years amid liquidity problems.
JPMorgan became a shareholder with 5.47% voting power, according to Thursday’s filing.
Star’s stock price has been on a downward trend since 2022 due to multiple investigations into anti-money laundering violations, and has fallen by nearly 50% this year. Stock prices fell 52% and 66% in 2022 and 2023, respectively.
The company’s shares were trading nearly 2% lower at A$0.255 at 0055 GMT.
In its delayed annual results released last week, Star said it may sell assets due to ongoing restructuring activities and address capital outflows related to regulatory issues.
The gaming company’s corporate lenders had also agreed to provide up to A$200 million ($137 million) in new space and an immediate A$100 million infusion.
Earlier this year, Australian asset manager Perpetual increased its stake in the cash-strapped company.
The Star previously claimed that Hard Rock Hotels & Casinos was considering a bid, but the Florida-based chain denied involvement in the takeover bid.
The Star’s future is currently in jeopardy after an investigation found the operator remains unfit to run a Sydney casino due to leadership and culture issues. .
The Star last week responded to the NSW regulator’s showcause notice regarding its suitability to hold a casino license.
($1 = 1.4599 Australian Dollar)