May 13, 2021
In Australia and The Star Entertainment Group Limited has reportedly followed rival casino operator Crown Resorts Limited in agreeing to stop the use of junket firms in order to attract high-value foreign players to its New South Wales property.
According to a report from Inside Asian Gaming, the move from the Brisbane-headquartered company comes a little over four months after Crown Resorts Limited was refused a gaming license for its new Crown Sydney development owing to concerns that it may have been complicit in a slew of money laundering offenses tied to its own utilization of such junkets. The source detailed that this licensing decision from the New South Wales Independent Liquor and Gaming Authority could be revisited before the end of the year so long as the operator has implemented a number of recommendations earlier laid out by an independent investigation chaired by former New South Wales Supreme Court Judge Patricia Bergin.
May 10, 2021
In Australia and The Star Entertainment Group Limited has reportedly floated a non-binding proposal that could see it merge with rival casino operator Crown Resorts Limited to create an entity that would run seven properties across four states.
According to a report from GGRAsia, the consolidation bid from the Brisbane-headquartered operator values individual shares in Crown Resorts Limited at about $11 and proposes offering backers in its biggest competitor 2.68 of its own interests for every stake it receives. The source detailed that the proposition is also providing such shareholders with the alternative of receiving slightly over $9.84 in cash for up to 25% of their investments.
Huntley Mitchell 10 May 2021
The Star Entertainment Group Limited has submitted a conditional, non-binding, indicative proposal to merge with beleaguered rival Crown Resorts.
The proposal is for a nil-premium share exchange ratio of 2.68 Star shares per Crown share, and also includes a cash alternative of $12.50 per Crown share for up to 25 per cent of the company’s issued share capital, with any scale back to occur on a pro rata basis.
Assuming the cash alternative is fully taken up, the merger proposal would result in pro forma ownership of the merged entity of 59 per cent for Crown shareholders and 41 per cent for Star shareholders.
In Australia and local casino operator The Star Entertainment Group Limited has released a trading update covering the first five months of 2021 and showing that its domestic gaming revenues had improved by about 37% year-on-year.
The Sydney-listed firm used the filing (pdf) to detail that the recovery came after its The Star Gold Coast, Treasury Brisbane and The Star Sydney properties were forced to close for a ten-week period from March 23 of 2020 due to fears associated with the coronavirus pandemic. The operator explained that the recent revival had included a bump of 3% year-on-year in slot receipts to help push its accompanying company-wide revenues up by 35%.