Star Entertainment Makes Bid For Crown Resorts
Australian casino operator Star Entertainment Group has entered the race to take control of it major competitor Crown Resorts. The James Packer controlled casino company has had serious problems being unable to receive a license for its flagship Sydney casino resort due to regulatory failings in money laundering and its VIP business.
The merger if it is approved by Crown would value the combined companies at $12 billion and create a giant hospitality and gambling business in the country with seven resorts in four states.
Already Crown has received an offer from equity giant Blackstone for $8 billion and that offer is still being considered but sources close to the companies believe the Star offer is much more interesting to Crown and would certainly allow the Sydney casino resort a license by regulators.
Another investment firm, Oaktree Capital has entered the fray with a $3 billion offer for James Packer’s 37% share in Crown that sources say is unlikely to succeed.
The announcement that Star had entered the bidding was made on Sunday 9th May and Star believes that the merger would create savings on a merged company of around $200 million a year, which would transfer shareholders value by upwards of $2 billion.
