A Macau-based investor, Wang Xing Chun, has significantly increased his stake in troubled Australian casino operator Star Entertainment, reaching 5.5% ownership through recent share purchases worth AU$1.7 million.

The investment comes at a critical time for Star Entertainment, which is facing severe financial difficulties. According to Morningstar analyst Angus Hewitt, the company's current cash burn rate puts its ability to reach its February 28 earnings report in question.

Star's corporate regulations limit individual voting power to 10%, as specified in agreements with Australian gaming authorities. The company maintains the right to block share transfers that would violate these restrictions.

The timing of Wang's investment raises regulatory concerns due to Star's previous troubles with Macau connections. The company's current challenges stem largely from anti-money laundering investigations related to its past dealings with Macau junket operator Suncity, whose founder received an 18-year prison sentence in 2022.

Currently, Star's major properties - The Star Sydney, The Star Brisbane, and the Star Gold Coast - are under government management due to regulatory investigations.

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

According to Morningstar's analysis, despite Wang's investment, the likelihood of a rescue acquisition for Star Entertainment remains low, leaving the company's future uncertain.

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