Headlines

Crown Deal With Star Nears As Blackstone Offer Refused

Crown Resort the Australian casino operator has announced it has rejected the offer from US equity giant Blackstone for $6.5 billion and in turn is asking rival operator Star Entertainment for more details on their bid.

Blackstone owns a 10% stake in Crown Resorts that is controlled by James Packer and has not been able to carry out any due diligence but still went ahead with the offer, however the Crown Resorts board say that the Blackstone offer undervalues the potential for Crown.

As previously reported by the iGaming Post the offer now from Star Entertainment is the strong favourite, it values Crown at A$14 per Crown share or A$9 billion, that offer along with cost saving potential due to the businesses working practices makes more sense for Crown.

It would also offer Crown Resorts a certain release from continued inquiries into their regulatory governance with a new inquiry taking place in the state of Victoria lasting some six-weeks to determine the suitability for Crown to operate casinos there.

Insiders close to the operator believe that a deal with Star will be completed prior to the end of the Victoria hearing on their suitability.

Claire

iGaming & land based specialist reporter for the global gaming market

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