SGR the star entertainment group limited

Bally’s Chairman Soo Kim talks after deal sealed to acquire Australia’s Star Entertainment

  1. 335 Posts.
    lightbulb Created with Sketch. 47
    https://youtu.be/-69F0mKTSe0?si=qw2St8z_zRIqxzSW

    Here's a summary of the YouTube interview titled “Bally’s Chairman Soo Kim talks after deal sealed to acquire Australia’s Star Entertainment”:

    Deal Overview

    • Soo Kim, Chairman of Bally’s Corporation, discusses the recent deal to acquire a 56% stake in Star Entertainment for $300 million AUD.

    • The deal includes immediate liquidity of $100 million and was finalized rapidly due to Star's urgent financial needs.

    • The term sheet is public and lodged with the ASX, though regulatory approval and a shareholder vote are still pending.

    How the Deal Came Together

    • Bally’s was not engaged initially; Star only opened talks after refinancing attempts (e.g., Salter Brothers) failed.

    • The deal came together quickly—within about a week—once contact was re-established.

    Brisbane Question

    • Star previously had an agreement with Far East Consortium and Chow Tai Fook regarding Brisbane.

    • Bally’s is prepared for either scenario: managing all assets or just the remaining ones if Brisbane is sold off.

    Valuation vs Past Performance

    • In 2018, Star had a market cap of $4.7 billion AUD.

    • Bally’s offer now values it at around $350–600 million, reflecting its massive decline but also the turnaround opportunity.

    Bally's Vision & Strategy

    • Soo Kim emphasizes an “owner-operator” approach: long-term investment, active involvement, and alignment with shareholder interests.

    • Bally’s intends to:

      • Improve operational efficiency.

      • Work closely with regulators.

      • Address areas like anti-money laundering, responsible gambling, and sustainable operations.

      • Bring in a new board and CEO once approvals go through.

      • Create a clear “new era” for Star, possibly with a rebrand.

    Regulatory Outlook

    • Kim expresses full support for strict regulations, seeing them as essential to legitimacy and sustainability.

    • He is confident about aligning Bally’s operations with Australian gaming policy objectives.

    Timeline & Next Steps

    • Estimated 60–90 days for:

      • Shareholder vote.

      • Regulatory approvals.

      • Full control and operational handover.

    • During this period, Bally’s will plan “Day One” actions for transformation.

    Financial & Structural Details

    • The initial investment is split:

      • Convertible note (debt turning into equity once approved).

      • Subordinated straight note (non-convertible).

    • Bruce Mathieson, a long-time shareholder, will co-invest $100 million and partner with Bally’s.

    • Bally’s raised its offer from $250M to $300M after Star’s request.

    Challenges Ahead

    • The business currently operates with zero margins, an anomaly in the casino industry.

    • Bally’s expects to uncover operational inefficiencies, high costs (consultants, salaries), and mismanagement—but views these as fixable problems and opportunities for improvement.

    Final Thoughts

    • Soo Kim is optimistic and prepared for the challenges, determined to restore value.

    • He’s committed to transparency, shareholder communication, and long-term improvement, emphasizing that Bally’s is in it for the long haul.



 
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)
Last
9.2¢
Change
0.002(2.22%)
Mkt cap ! $263.9M
Open High Low Value Volume
9.1¢ 9.4¢ 9.0¢ $1.043M 11.36M

Buyers (Bids)

No. Vol. Price($)
9 717316 9.1¢
 

Sellers (Offers)

Price($) Vol. No.
9.2¢ 15991 2
View Market Depth
Last trade - 16.10pm 08/08/2025 (20 minute delay) ?
SGR (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.