Lots going on around the traps to kick the week off, and here is the latest news from Star Entertainment Group, Carnarvon Energy and financial sector stalwart AMP Limited.
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Investors gave a tiny thumbs up to the news that Star Entertainment Group (ASX: SGR) CEO Matt Bekier had become the first casualty of the NSW government’s inquiry into the casino group, which have revealed more than $900 million in apparent breaches of money laundering regulations and laws.
The shares ended the day up 0.3% at $3.24 after the news appeared before the start of morning trading.
Star announced his resignation on Monday morning saying the CEO’s decision “follows issues raised in the public hearings in connection with the review” which found evidence of widespread avoidance of money laundering laws.
“While the review remains ongoing, Mr Bekier informed the board that as managing director and CEO he is accountable for the effectiveness and adequacy of the company’s processes, people and culture.”
The statement from Star says his final departure date is yet to be determined.
The inquiry has heard that Star disguised this spending as hotel and other accommodation costs and then hid the reality of the spending from its bank, the National Australia Bank which operated terminals in the casinos and hotels.
As well other evidence has revealed deals with big gamblers I(known as high rollers) and close links to operators of so-called gambling junkets who were given special deals on their gambling and paying for it.
As a result of the disclosures so far, The Star risks being found unsuitable to retain its Sydney casino licence.
Similar issues at Crown in Victoria and in Perth led to the departure of its senior management and most of its board but Crown held on to its casino licences.
Market analysts expect more resignations will follow.
Complicating matters for the company is the aggressive attitude from the NSW government about possible tax avoided by Star.
NSW Treasurer Matt Kean said on Monday the state government will pursue The Star for any unpaid tax it is found to be owing.
Mr Kean said the government was keeping a close eye on proceedings, and whether the state’s taxpayers had been short changed.
“In addition to the allegations of misconduct, I am also concerned by the impacts of any improper classification of spending by clients at The Star, including any impacts on gambling tax revenue payable to the NSW government,” he said.
“Make no mistake – we will chase every dollar that is owed to the taxpayers of NSW if any misconduct has occurred,” Mr Kean said.
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Meanwhile, Carnarvon Energy (ASX: CVN) is looking for around $70 million in a placement to major investors a week after it and Santos reveal another oil strike on the Northwest Shelf.
Carnarvon told the ASX on Monday that the issue will see it making a fully underwritten institutional placement of 234.8 million new fully paid ordinary shares at 30 cents a share. The shares closed at 33 cents last Friday.
The company told investors the placement, together with Carnarvon’s existing cash, will provide funding for progressing the Dorado oil strike towards a development decision later this year.
The funds will help pay a contribution towards the equity component of Phase 1 (liquids) of the Dorado development; Front End Engineering Design (FEED) work for the Dorado development; the drilling of the Apus-1 exploration well; appraisal of the recent Pavo-1 oil discovery, and studies to identify the next high impact drilling targets in the Bedout Sub-basin; and general corporate purposes.
Carnarvon CEO Adrian Cook said in Monday’s statement that:
“The proceeds from the Institutional Placement will be used to bring the Dorado liquids development to a Final Investment Decision in 2022. Dorado is a world class resource, containing high-quality reservoirs and fluids in shallow water which we expect to result in strong returns for our shareholders.
There is also a significant amount of tie-in potential close to the Dorado development. The funds will also be used to test this potential, including the upcoming Apus-1 well, which will commence drilling next month. In addition to the recent Pavo-1 discovery, this well has the potential to materially add value to the Dorado project”.
Carnarvon and Santos last week revealed they had struck oil in the Pavo-1 well near the Dorado strike. Pavo has an estimated 43 million barrels of oil – Dorado has close to half a billion or which just under a half is considered to be recoverable.
Both companies believe it will be fairly easy and not that expensive to link the Pavo well to the Dorado collection system, and will look to a final go-ahead for the Dorado project later this year.
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And finally, AMP Limited (ASX: AMP) has finalised another part of its dismemberment with the completion of the sale of its Global Equities and Fixed Income (GEFI) business to Macquarie Asset Management.
The deal sees $47 billion in assets moving across to Macquarie as part of AMP’s simplification strategy.
The deal was first announced last July as AMP seeks to revamp its asset management business, including the splitting up and spinning off, of AMP Capital.
The business scheduled to be listed on the ASX this year as Collimate Capital, which AMP says will focus on private markets investing, including unlisted infrastructure and real estate assets.
AMP Capital CEO Shawn Johnson said the completed sale of GEFI was a “key milestone” in Collimate’s separation from AMP.
“Our teams have been actively working to ensure a smooth transition of funds and clients and we’re confident that [Macquarie Asset Management, and our talented teams who are transferring, will deliver great outcomes for them,” he said in Monday’s announcement
The decision to break up AMP Capital was made after negotiations with US fund manager Ares fell apart in 2020 after six months of talks.
AMP shares edged up 0.5% to 96 cents.
