May 10, 2021, 10:08 am ·
Australian casino operator The Star Entertainment Group has made a non-binding proposal to merge with rival Crown Resorts in a move that would create a A$12 billion ASX-listed gaming and entertainment powerhouse.
According to the proposal, The Star offers 2.68 shares per Crown share. This values the latter casino company’s shares above A$14.
Crown shareholders would also be offered an alternative of A$12.50 per share in cash, capped at up to 25% of Crown shares. If that alternative gets fully taken up, a merger between the two companies would result in
Crown shareholders owning 59% of the combined group’s shares and Star shareholders holding the rest.
Synopsis
The S&P/ASX 200 index climbed 1.3 per cent to 7,172.8, rising to pre-pandemic levels, with index heavyweights BHP Group and Rio Tinto scaling record highs on strong iron ore prices.
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Miners climbed more than 3.8 per cent to hit their highest since May 2008, with BHP rising 3.1 per cent, Rio Tinto adding over 4 per cent and Fortescue closing about 7 per cent higher.
Australian shares rose to record closing highs on Monday, led by a rally in miners on strong commodity prices while disappointing U.S. jobs data eased some concerns about an earlier-than-expected interest rate hike and aided equities globally.
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 biddersâ regulatory risk
NSW gaming authority chairman Philip Crawford will play an influential role in the process of determining who is the next possible acceptable owner of Crown Resorts.
May 11, 2021 â 12.00am
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The bidding war for control of Crown Resorts will see the chairman of the NSW Independent Liquor and Gaming Authority, Philip Crawford, emerge from the shadows and possibly play a critical role in the outcome.
Crawford, who worked as a solicitor at Henry Davis York for many years before opening a mediation practice in Sydney, is overseeing the team responsible for due diligence and probity checks for potential buyers of Crown.
Star Entertainment proposes $12 billion merger with Crown10/05/2021|3min
The Star Entertainment Group has proposed a $12 billion merger with Crown Resorts in a deal which would create a gambling and hospitality empire spanning across seven properties in four states.
United States investment company Blackstone has also made a bid for the embattled casino operator after regulators suspended Crown s gaming license at its new flagship Sydney casino in February.
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