(Reuters) – U.S. bank JPMorgan Chase & Co. (NYSE:) has become a major shareholder in Star Entertainment, as shares of the beleaguered Australian casino operator have fallen sharply in the past few years amid liquidity issues, a stock exchange report showed.
JPMorgan has become a shareholder with voting power of 5.47%, the filing on Thursday showed.
Star shares have seen a downward trend since 2022 after facing multiple inquiries over anti-money laundering violations, and have lost nearly 50% this year. The stock is down 52% and 66% in 2022 and 2023, respectively.
The company’s shares were trading nearly 2% lower at A$0.255, by 0055 GMT.
In its delayed annual results published last week, Star said it may offload assets for ongoing restructuring activities and address outflows related to regulatory matters.
The gaming company’s corporate lenders also agreed to provide new facilities of up to A$200 million (US$137.00 million) with an immediate injection of A$100 million.
Earlier this year, Australian asset manager Perpetual increased its stake in the cash-strapped company.
Before that, Starr claimed that Hard Rock Hotels and Casinos was considering a bid, but the Florida-based chain denied any involvement in a takeover bid.
Star’s future currently hangs in the balance after an investigation found the casino operator was experiencing issues around its leadership and culture, and was still unfit to run its own Sydney casino.
Last week, Star responded to the NSW Regulatory Authority’s offer notice, addressing its suitability for a casino licence.
($1 = 1.4599 Australian dollars)