In Australia and Supposedly, Star Entertainment Group Limited made a non-binding proposal that could lead to its merger with rival casino operator Crown Resorts Limited to create an entity that will manage seven properties in four states.
According to a report by GGRAsia, the Brisbane-based operator's consolidation offer values the individual stake in Crown Resorts Limited at approximately $ 11 and proposes to offer support from its largest competitor 2.68 interest for each rate received. The source specifies that the proposal also provides such shareholders with the alternative of receiving just over $ 9. 84 in cash to their investment 25%.
The Star Entertainment Group Limited is reportedly responsible for the properties of The Star Gold Coast, Treasury Brisbane, and The Star Sydney, and is currently spending approx $ 2.3 billion to bring the development of Queen's Wharf Brisbane to 23 - acre plot of land in downtown Brisbane. For his part and based in Melbourne Crown Resorts Limited purported to run Crown Melbourne and Crown Perth facilities, but was recently prevented from bringing gambling into Crown Sydney's new estate after officials in New South Wales ruled the company may have been complicit in a series of money laundering offenses related to its use of foreign junk companies .
An attractive argument:
Star Entertainment Group Limited, which is listed on the Sydney Stock Exchange, reportedly used official filing on Monday announcing that the merger with Crown Resorts Limited could be " highly accretionary ”For both companies and provide annual savings of up to $ 157 million . In addition, the operator allegedly declared that the suggested combination " will unlock significant value from the sale and leaseback of an enlarged real estate portfolio ”And create an entity valued in the region 9.4 billion USD .
However, reportedly The Star Entertainment Group Limited is facing fierce competition in its quest to acquire Crown Resorts Limited through the world's largest private equity firm. The Blackstone Group Incorporated . The US company allegedly made a takeover bid for $ 6.2 billion in March, then unexpectedly increased the rate over the weekend thanks to the revised $ 6.6 billion proposal .
American capital giant Oaktree Capital Management LP is further rumored to be involved in the race for Crown Resorts Limited and offered a casino operator to its largest shareholder last month, Consolidated Press Holdings Proprietary Limited company founder James Packer, about $ 2.3 billion in cash on his 37% shares .
Ease of endorsement:
Local financial services giant JP Morgan Securities Australia Limited reportedly responded to this latest offer by stating that Australian Comp Ethics and Consumer Affairs Committee would not be " significant obstacle 'on the prospect of the acquisition of Crown Resorts Limited by The Star Entertainment Group Limited. However, the banking expert allegedly predicted that " regulatory approvals "Can slow down this process and" timeline to finish. "
Apparently read the statement of JP Morgan Securities Australia Limited ...
“Upon approval of the merger, The Star Entertainment Group Limited considers synergies can be achieved quickly . Most of the synergies will be used within twelve months. "