JPMorgan is buying shares in financially troubled Australian Star Entertainment By Reuters

(Reuters) – U.S. bank JPMorgan Chase & Co (NYSE:) has become a significant shareholder in Star Entertainment, a stock exchange filing showed, as shares of the struggling Australian casino operator have fallen sharply in recent years due to liquidity problems.

JPMorgan became a shareholder with a 5.47% voting share, according to filings Thursday.

Star’s shares have been on a downward trend since 2022 after it faced multiple investigations into money laundering violations, and have lost nearly 50% this year. The stock fell 52% and 66% in 2022 and 2023, respectively.

Shares in the company were trading almost 2% lower at A$0.255 by 0055 GMT.

In its delayed annual results released last week, Star said it may divest assets for ongoing restructuring activities and address outflows related to regulatory matters.

The gaming company’s corporate lenders had also agreed to provide a new facility of up to A$200 million (US$137.00 million) with an immediate cash injection of A$100 million.

Earlier this year, Australian asset manager Perpetual increased its stake in the financially troubled company.

Star previously claimed that Hard Rock Hotels & Casinos was considering a takeover bid, but the Florida-based chain denied any involvement in a takeover bid.

Star’s future is currently in jeopardy after an investigation found the casino operator had problems with its leadership and culture and remains unable to operate its Sydney casino.

Last week, Star responded to the New South Wales regulator’s notice regarding the company’s suitability to hold a casino license.

($1 = 1.4599 Australian dollars)