By Mike Cherney SYDNEY Australian casino operator Crown Resorts Ltd. said it received a proposal from rival The Star Entertainment Group Ltd. to merge the two companies, just as Blackstone Group Inc. increased its previously announced bid for Crown. Crown, which operates casinos in Melbourne and Perth and recently completed a new skyscraper on Sydney s waterfront, said it has not yet formed a view on the merits of the proposals. Crown also announced that it has appointed Steve McCann as its new chief executive. Mr. McCann is currently group chief executive of real-estate developer Lendlease Group. Star s merger proposal contemplates a nil-premium share exchange ratio of 2.68 Star shares for each Crown share. The merger proposal also includes a cash alternative of 12.50 Australian dollars (US$9.81) per Crown share, subject to a cap of 25% of Crown s total shares.
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.
Star Entertainment Group is proposing an all-stock merger and Blackstone has sweetened its cash offer. Bloomberg | May 10, 2021
(Bloomberg) A bidding war erupted for Crown Resorts Ltd. with rival casino operator Star Entertainment Group Ltd. proposing an all-stock merger and Blackstone Group Inc. sweetening its cash takeover bid.
Star said its offer would create an Australian gaming and hospitality giant with a market value of A$12 billion ($9.4 billion) as it unveiled plans to cut costs, as well as sell and lease back property, at the enlarged group. Minutes earlier, U.S. private-equity firm Blackstone raised its offer for Crown by 4% to A$8.36 billion.
Crown bidding war intensifies as rival proposes merger, Blackstone raises offer
Bloomberg
A bidding war erupted for Crown Resorts Ltd, with rival casino operator Star Entertainment Group Ltd proposing an all-stock merger and Blackstone Group Inc sweetening its cash takeover bid.
Star said its offer would create an Australian gaming and hospitality giant with a market value of A$12 billion (US$9.4 billion) as it unveiled plans to cut costs, as well as sell and lease back property, at the enlarged group.
Minutes earlier, US private equity firm Blackstone raised its offer for Crown by 4 percent to A$8.36 billion.
Crown said it is assessing both proposals.
On Friday the
S&P/ASX 200 Index (ASX: XJO) finished a solid week on a positive note. The benchmark index rose 0.3% to 7,080.8 points.
Will the market be able to build on this on Monday? Here are five things to watch:
ASX 200 futures pointing lower
The Australian share market looks set to start the week with a small decline despite a solid finish on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the week 4 points lower this morning. On Wall Street on Friday, the Dow Jones rose 0.65%, the S&P 500 climbed 0.75%, and the Nasdaq stormed 0.9%.