Macau businessman Wang Xing Chun has increased his stake in Star Entertainment to 5.5%, becoming the company's second-largest shareholder despite the Australian casino operator's financial struggles.

Wang recently purchased AU$1.7 million worth of shares, with acquisitions dating back to September 2024. According to Star's regulations, individual shareholders cannot exceed 10% voting power, as stipulated in agreements with Australian gaming authorities.

This development comes at a critical time for Star Entertainment, which is experiencing severe cash flow problems. Morningstar analyst Angus Hewitt warns the company may struggle to reach its February 28 earnings report at current burn rates.

The Macau connection raises potential concerns, given Star's previous troubles with anti-money laundering investigations linked to former Macau junket operator Suncity. These investigations led to government takeover of Star's three venues: 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 Macau businessman connected to a Hong Kong-listed coal group, his exact identity and intentions remain unconfirmed. The shares are registered to a Macau address, but there's no evidence linking him to any Macau casino operators.

Despite the potential for interest from Macau's six casino concessionaires, Morningstar's analysis suggests the likelihood of a rescue acquisition remains low.

The investment comes under particular scrutiny given Star's regulatory restrictions and its recent history with Macau-related entities, notably the Suncity scandal that resulted in its founder Alvin Chau's 18-year prison sentence for criminal group involvement and illegal betting operations.

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