The Star Entertainment Group Ltd (ASX: SGR) share price is pushing higher on Tuesday.
In afternoon trade, the embattled casino and resorts operatorâs shares are up over 1% to $2.67.
Whatâs going on with the Star share price?
The Star share price is rising on Tuesday after the company responded to the NSW Independent Casino Commissionâs (NICC) show cause notice. This relates to the report prepared by Mr Adam Bell SC (the Bell Report) that found “extremely serious governance, risk management and cultural failures” had occurred at its Sydney casino.
According to the release, Star accepts the findings of the Bell Report, including the finding of unsuitability. The company also acknowledges the gravity of the conduct which is raised in the report.
The company stressed that it has taken “significant and urgent remedial steps”, including increased risk, compliance, and security staff, approval of upgrades to surveillance technology as well as permanently exiting junkets and closing the Marquee nightclub.
It is also committed to taking additional necessary and appropriate action in clear timeframes to address the issues raised by the report. This is in the hope that the NICC âcan be satisfied that The Star Sydney has taken sufficient steps, and has bound itself to take further steps, so that it may continue to hold its licence.â
Star also highlights that it has made significant changes in its leadership. Noting that âthe team to lead us on the path to suitability will be very different to those who led TSEG in the past.â
Whatâs next?
The future of Star Sydney now rests with the NICC.
It will make a decision on whether to allow the company to continue to hold its licence in due course. It could also fine the company upwards of $100 million.
Though, with the Star share price pushing higher today, it appears as though the market feels the company has potentially done enough to continue holding its licence.
Time will tell if that is the case.
The post Star Entertainment share price lifts on ‘significant and urgent remedial steps’ appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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