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A $12 billion merger with once bitter rival Crown Resorts would create the âBHP of gaming and hospitalityâ with an Australian network that would allow the group to compete globally for the next 20 years, The Star Entertainment Group chief executive Matt Bekier said.
The prospect of a bidding war sent Crown shares up 7.26 per cent on Monday to a near two-year high of $13. The casino group also named former Lendlease boss Steve McCann as its new chief executive.
Star CEO Matt Bekier has a 20-year vision for Crown and The Star. Â
James Alcock
Crown stock has risen 28 per cent since a NSW government inquiry declared on February 9 that the gaming giant was unfit to hold its Sydney casino licence.
Star, Crown merger would be a company of scale on global platform 10/05/2021|8min
Star Entertainment CEO Matt Bekier says if his company merges with Crown Resorts it would create a company of scale on the global stage.
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.
“With this company, the combined assets will be a company of scale on the global platform,” Mr Bekier told Sky News.
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.
Provided by Dow Jones Shares of retailers and other consumer companies fell as inflation fears built. The price of various commodities, including lumber, copper and iron ore are at or near records. Gasoline prices were hovering near multiyear highs even before a major pipeline outage crimped East Coast supplies. Household expectations of inflation levels one year from now jumped to 3.4% in April from 3.2% in March, for the highest reading since September 2013, according to the Federal Reserve Bank of New York s Survey of Consumer Expectations. In one indication of inflation risks, chicken processor Tyson Foods said it s raising wages to improve staffing at its poultry plants, spending tens of millions of dollars to buy meat from competitors and even bringing in a new male bird to help breed bigger flocks.