A Macau-based investor has significantly increased his stake in troubled Australian casino operator Star Entertainment, acquiring 5.5% of the company's shares through purchases dating back to September 2023.

Wang Xing Chun recently bought AU$1.7 million worth of Star shares, making him the company's second-largest shareholder. This development was confirmed in a filing with the Australian Securities Exchange (ASX) on Friday.

Star Entertainment's constitution limits individual voting power to 10%, as per agreements with Australian gaming regulators. The company reserves the right to block share transfers that would exceed this threshold.

This investment comes at a critical time for Star, which is facing severe financial challenges. According to Morningstar analyst Angus Hewitt, the company's current cash burn rate may make it difficult to reach its February 28 earnings report date.

The Macau connection raises potential regulatory concerns, given Star's previous troubles with anti-money laundering investigations related to former Macau junket operator Suncity. These investigations led to government oversight of Star's three properties: The Star Sydney, The Star Brisbane, and The Star Gold Coast.

Wang Xing Chun, 61, is reportedly a Singapore resident with Belgian citizenship. While sharing a name with a businessman previously connected to a Hong Kong-listed coal group, his exact identity and intentions regarding Star Entertainment remain unclear.

Despite Star's vulnerable position, Morningstar analysts consider the likelihood of a rescue acquisition low, even as the company faces ongoing financial and regulatory challenges.

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