Conflicts questioned as embattled Star elects new member to its board

3 months ago 5

New Star Entertainment board member Bruce Mathieson jnr has been quizzed on potential conflicts of interest with his hotel and gaming company, as shareholders overwhelmingly endorsed his election to the board of the struggling casino giant.

It came as chair Anne Ward was re-elected at the Star AGM on the Gold Coast on Tuesday, even as she confirmed she had only days left before retiring as soon as a $300 million investment from Investment Holdings and US-based Bally’s Corporation is converted into shares.

Once that occurred, Bally’s would hold 38 per cent of Star shares and Investment Holdings, which is backed by Bruce Mathieson snr, will increase its ownership to 23 per cent. The two entities will own a combined 61 per cent.

Bruce Mathieson jnr has formally been voted on to the board of The Star Entertainment.

“I intend to retire from the board once the convertible notes issued to Bally’s Corporation and Investment Holdings are converted into shares and relevant appointments are then made to the board,” Ward told shareholders.

“This is expected to be completed later this week. Accordingly, my re-election today is only for a matter of days.”

While Ward bid the board farewell, Mathieson was formally introduced to shareholders to have his board nomination confirmed – which it was, with 99.37 per cent support.

Star’s Gold Coast casino, where the company’s annual general meeting was held.

But it was not without scrutiny. In a question submitted online, shareholder advocate Stephen Mayne asked Mathieson how he would manage the conflict of interest of also being the biggest shareholder in Endeavour Group, Australia’s largest hotel poker machine operator.

“With his investment in The Star, given the debate about cashless pokies, will Bruce attempt to stop Star from campaigning for hotels to suffer under the same rules we face?” he said.

Mayne also asked how much money the Mathieson family had lost since it invested in Star.

That question was cut off at the pass by Ward, who said that was a private matter, and Mathieson did not address the conflict issue when he finally had the floor.

“I’ll be waking up every day to ensure I try my best and that’s what we tried to do at Endeavour as well,” he said.

“Regulators play an important part – an integral part – and I’ve certainly worked with them over a long period of time.

“It’s hand in glove and they will steer the regulatory environment for the casino industry and the hotels industry as they see fit.”

Shareholders also voted overwhelmingly in favour of Star’s remuneration report, including chief executive Steve McCann’s $7.5 million pay package – a package that Ward defended.

“To work at The Star is to work in a very demanding environment, particularly in recent times, and to ensure that The Star has set itself up for future success, we are required to attract the best talent we can to our business – including our CEO,” she said.

“This talent operates in a very competitive market, and we must ensure that we pay competitively to secure the right people to turn the business around.”

Ward also defended the remuneration for the board – herself included – after disquiet from retail shareholders on the floor.

“Administration was a very real prospect during the past 12 months, and the fact that the company still exists today is largely due to the resilience and determination of the board and executive team who’ve worked so hard to save the company,” she said.

Along with Ward, Tuesday marked the last Star AGM for director Michael Issenberg, who was also retiring. Bally’s was expected to nominate two board members to replace the pair in coming days.

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