JPMorgan Chase & Co. has fully divested its stake in Australian casino operator Star Entertainment, as confirmed through recent regulatory filings with the Australian Securities Exchange (ASX).

The investment bank had previously acquired a 5.47% voting equity stake in October 2024, only to completely exit its position by December 18, 2024. This rapid departure comes during a challenging period for Star Entertainment, which faces multiple operational and regulatory hurdles.

Star Entertainment currently operates under significant pressure, with all three of its properties - The Star Sydney, The Star Brisbane, and The Star Gold Coast - under government management due to regulatory investigations. The company's Sydney flagship location has been under state control since 2022, primarily due to anti-money laundering concerns.

Recent developments include:

• Postponement of the Star Gold Coast license hearing to March 31, 2025
• Extension of special manager appointment timeline to June 31, 2025
• Mandatory review of progress by the Commissioner for Liquor and Gaming Regulation in February 2025

The company faces additional challenges, including:

• Declining earnings
• Liquidity concerns
• Potential asset sales to raise capital
• Decreased Chinese customer base, with many players choosing Macau or Singapore instead

While JPMorgan has not disclosed its reasons for the divestment, the move raises concerns about Star Entertainment's near-term outlook and its ability to resolve ongoing regulatory issues while maintaining financial stability.

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