Star Entertainment Group and US private equity investor
Crown Resorts, Australia’s biggest casino company by market capitalization.
Star is offering an all-stock buyout for Crown, which would create a A$12 billion (US$9.4 billion) entertainment and tourism entity and make available A$200 million in annual savings for the combined group. Star is offering 2.68 of its shares for each Crown stock with a value of A$14 per share. It has also offered a cash alternative of A$12.50 per share for as much as 25 percent of Crown’s issued shares.
Star’s proposal came minutes after Crown announced that Blackstone had topped its offer by 50 cents per share to A$12.35 per share, worth A$8.3 billion.
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SYDNEY Australian casino operator Star Entertainment Group on Monday proposed an all-stock buyout of larger rival Crown Resorts Ltd that it valued at A$9 billion ($7 billion), taking on two private equity giants for control of the troubled company.
Three months after Crown was declared unfit for a gambling license at its new Sydney resort tower, Star said the share-swap takeover approach would create “one of the largest and most attractive integrated resort operators in the Asia Pacific region.”
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The operator of Sydney s Star casino has made overtures to Crown Resorts about a proposed merger that would create a $12billion tourism and entertainment giant.
Crown is already the subject of two other offers, including a takeover, from US predator Blackstone and US asset manager Oaktree Capital.
The Star Entertainment Group has proposed a merger with Crown that would see 2.68 Star shares exchanged for each Crown share.
The Star Entertainment Group has proposed a merger with Crown that would see 2.68 Star shares exchanged for each Crown share (The Star in Sydney pictured)
It s also offering a cash alternative of $12.50 per Crown share, subject to a cap equal to 25 per cent of the target s shares on issue.
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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.