Billionaire pub baron Bruce Mathieson given green light to lift stake in The Star

Billionaire pubs baron Bruce Mathieson has been given the all clear by NSW regulators to increase his holding in troubled casino company Star Entertainment Group. 

Billionaire pubs baron Bruce Mathieson is looking to increase his stake in The Star.

Billionaire pubs baron Bruce Mathieson has been given the green light by NSW regulators to lift his stake in troubled casino company Star Entertainment Group. 

The NSW Independent Casino Commission (NICC) said on Thursday it had cleared Mr Mathieson and his company Investment Holdings to increase their holdings above the 10 per cent threshold that requires regulatory approval. Investment Holdings currently holds 9.83 per cent of The Star, making it the company’s largest single shareholder.

The move comes a day after The Star named veteran businessman Steve McCann as its new chief executive, its latest move to survive a regulatory probe that could result in the loss of its Sydney casino licence.

Mr Mathieson has been lifting his holdings in The Star over the past few months, despite a 46 per cent slump in it share price over the last 12 months, declaring it has “wonderful assets”.

It is understood Gold Coast-based Mr Mathieson is eyeing Star’s Queensland properties and the $3bn Queen’s Wharf development in Brisbane set to open in August.

The NICC said Liquor & Gaming NSW had conducted a comprehensive investigation on its behalf assessing a range of financial and non-financial factors over a 12-month period.

NICC chief commissioner Philip Crawford said the report provided the necessary information for the NICC to deem Investment Holdings and its directors Bruce Mathieson and Ross Blair-Holt suitable to lift their holdings.

“Investment Holdings and its associates underwent a rigorous assessment and ultimately satisfied the criteria for all applicants to be of sound and stable financial background with no adverse findings that would prevent close associate status,” Mr Crawford said.

New Star Entertainment Group chief executive Steve McCann.

“Mr Mathieson and Mr. Blair-Holt have extensive experience within the liquor and gaming sectors, which positions them well for potential direct interactions with The Star Entertainment management group.”

Investment Holdings will require separate approval in Queensland to meet full regulatory obligations in both states.

Mr McCann has his work cut out for him in Queensland with the multibillion-dollar Queen’s Wharf development set to open next month.

Star is facing a multitude of challenges in Queensland, including long delays to the opening of Queen’s Wharf as well as regulatory hurdles that still need to be resolved.

It has been a rocky period for Star, which still faces losing its casino licences in both Queensland and Sydney due to continuing regulatory failures exposed in the Bell II inquiry.

Crucially, Mr McCann has already received the thumbs up from the NICC, which will be influential with Queensland regulators as it determines whether Star gets to keep its casino licences on the Gold Coast and Brisbane.

The Queensland government last month deferred the suspension of Star’s licence for its two Queensland casinos until December 20 to give it time to evaluate the progress the company is making on its remediation plan, and consider findings from the Bell II inquiry.

Mr McCann, who will be paid up to $10m after taking on the role, will be making regular trips to Brisbane in the lead up to the opening of Queen’s Wharf.

Wilson Asset Management (WAM) Leaders, which hold about 5 per cent of Star, said the appointment of Mr McCann was the first good news for the company in almost two years.

Originally published as Billionaire pub baron Bruce Mathieson given green light to lift stake in The Star