Byron KayeNikhil Nainan
4 minute read
The logo of Australia s casino operator Crown Resorts adorns a fence surrounding the Crown Perth hotel and casino complex in Western Australia, October 20, 2016. REUTERS/Aaron Bunch
Summary
Says it has had limited engagement with Crown so far
Crown faces two inquiries that could affect Melbourne, Perth casinos
July 23 (Reuters) - Australian casino operator Star Entertainment Group (SGR.AX) on Friday withdrew a A$9 billion ($6.6 billion) buyout proposal for rival Crown Resorts Ltd (CWN.AX) after an inquiry heard the target should lose its main licence, sending its shares lower.
Star, the country s No. 2 casino operator, said it may yet consider a tie-up with the troubled larger company, but was concerned about the impact of an inquiry on its value including whether it retains the licence to operate its Melbourne casino or the conditions under which its licence is retained.
Australia s Star Entertainment pulls $6.6 billion bid for Crown Resorts
By Byron Kaye and Nikhil Nainan
Reuters
(Reuters) -Australian casino operator Star Entertainment Group on Friday withdrew a A$9 billion ($6.6 billion) buyout proposal for rival Crown Resorts Ltd after an inquiry heard the target should lose its main licence, sending its shares lower.
Star, the country s No. 2 casino operator, said it may yet consider a tie-up with the troubled larger company, but was concerned about the impact of an inquiry on its value including whether it retains the licence to operate its Melbourne casino or the conditions under which its licence is retained.
Star Withdraws Proposal To Merge With Billionaire James Packer s Crown forbes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from forbes.com Daily Mail and Mail on Sunday newspapers.
Asian Markets Mostly Lower Cautious Trade
CANBERA (dpa-AFX) - Asian stock markets are trading mostly lower on Friday, ignoring the positive cues overnight from Wall Street, as lingering worries over rising spread of the delta variant of the coronavirus in several parts across the world rendered the mood cautious. The markets are supported mainly by crude oil prices as they continue to recover from the recent selling-off. Asian markets ended mostly higher on Thursday.
Australian stock market is slightly higher after early losses on Friday, extending the gains in the previous two sessions, with the benchmark S&P/ASX 200 staying just below the 7,400 level, following the positive cues overnight from Wall Street. Traders also remain concerned amid the rapid spread of the highly contagious coronavirus variants in four states and some regional areas, with lockdowns in three of the country s major cities limiting economic activity.
Huntley Mitchell 23 Jul 2021
The Star Entertainment Group has withdrawn its proposal to merge with Crown Resorts, citing “issues” raised at Victoria’s Royal Commission into Crown Melbourne as a major factor.
When the offer was
initially tabled by The Star in May, chairman John O’Neill claimed that bringing together the two rivals would create an estimated $12 billion ASX-listed national tourism and entertainment giant.
The Star also estimated that a merger with Crown would result in cost synergies of between $150 million and $200 million per annum.
However, The Star’s tune has changed dramatically since then, so much so that the company has now decided to pull its proposal.