Australian casino operator Star Entertainment Group Ltd has submitted a merger proposal to its market rival Crown Resorts Ltd, setting up a bidding war with private equity management firm Blackstone Group Inc.
In a Monday filing, Star Entertainment said its non-binding proposal offers 2.68 of its own shares per Crown share. Star Entertainment said its proposal values Crown shares above AUD14.00 (US$11.00).
Crown shareholders would also be offered the alternative of AUD12.50 cash per share, up to a limit of 25 percent of its shares, according to Star Entertainment’s proposal.
Star Entertainment owns and operates The Star Sydney casino hotel (pictured) in New South Wales, and two other gaming venues in the state of Queensland, the Star Gold Coast and the Treasury Casino and Hotel Brisbane. The company is currently expanding its Queen’s Wharf Brisbane scheme, with two Hong Kong-based partners.