Casino operator The Star Entertainment Group has officially entered the race for James Packer’s Crown Resorts by proposing a $12 billion merger that would create a gambling and hospitality giant spanning seven properties in four states.
The Star informed Crown on Sunday that it would publicly announce its non-binding, indicative proposal on Monday morning, according to sources aware of the offer who requested anonymity to discuss confidential matters. Crown has been blocked from open the casino at its new property at Sydney’s Barangaroo over probity concerns.The Star believes merging the two groups would deliver $150 million to $200 million in cost savings a year, which would translate to about $2 billion in equity value for shareholders in a combined group.
The combined company would retain the Crown brand for its properties in Melbourne, Perth and Sydney while The Star’s existing casinos and hotels would remain branded as The Star. Crown intended to open the gaming rooms at its new $2.2 billion Crown Sydney in December last year but the NSW gambling watchdog blocked it from doing so after explosive revelations emerged in the long-running Bergin inquiry.
Source: News Formal (newsformal.com)
pwhatch If the acccgovau approves this then we'll have to establish another regulator to compete against them!
pwhatch Hope not
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Star Entertainment proposes $12 billion merger with Crown | Sky News AustraliaThe 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. \n\nUnited 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.\n Just what we need, a mega gambling racket that can control more politicians.
Source: SkyNewsAust - 🏆 7. / 78 Read more »
Star, Crown merger would be a 'company of scale' on global platform | Sky News AustraliaStar Entertainment CEO Matt Bekier says if his company merges with Crown Resorts it would create a company of scale on the global stage.\n\nThe 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.\n\nUnited 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.\n\n“With this company, the combined assets will be a company of scale on the global platform,” Mr Bekier told Sky News.\n\n“When COVID lifts and travel is back that positions us really well to take full advantage.”\n\nAside from the offer price Mr Bekier said Star’s offer differs from competitors because of synergies but admitted up to 700 middle and senior management jobs would go. \n\n“We have synergies. We have estimate that there’s about $150 to $200 million of costs synergies.\n\n“We’ve been able to give guarantees to governments as well as the unions that the frontline, the customer serving staff will not be affected.\n\n“The frontline staff won’t be affected; this is really a corporate restructure.”\n Well, that's JUST what the world needs: Another multinational gambling and hospitality empire concentrating obscene amounts of wealth in the hands of a few already obscenely wealthy, morally vacuous individuals. Good stuff! Honestly, it's amazing humans have lasted this long ... Could I still launder my money though?
Source: SkyNewsAust - 🏆 7. / 78 Read more »