Crown Resorts has received an AU$12bn (US$9.4bn) offer from Australian casino operator The Star Entertainment.
Australia.- Crown Resorts has received a third acquisition offer. After Blackstone and Oaktree, now Australia’s The Star Entertainment has made an unsolicited non-binding offer of AU$12bn (US$9.4bn) for the casino operator.
According to Star Entertainment a merger of the two major Australian casino operators would create a national tourism and entertainment leader with a world-class portfolio of integrated resorts.
Star Entertainment believes the fusion would deliver between AU$150m to AU$200m of cost synergies per annum with an estimated net value of AU$2bn.
John O’Neill, Star chairman, said: “The combined group would be a compelling investment proposition and one of the largest and most attractive integrated resort operators in the Asia Pacific region.”
It’s also been suggested that The Star Entertainment could help Crown Resorts solve its regulatory problems faster than Blackstone or Oaktree thanks to its experience as a casino operator in Australia.
Crown Resorts is currently facing an investigation by a Royal Commission in Western Australia, which will decide if the company is suitable to continue holding a casino gaming licence for Crown Perth.
Blackstone raises its bid for Crown Resorts
Blackstone, which already has a 10 per cent holding in Crown, originally offered to buy all outstanding shares in Crown Resorts for AU$11.85 cash per share, but it has since increased its original bid by AU$0.50 to AU$12.35.
Meanwhile, Oaktree has made an unsolicited non-binding offer of AU$3bn for the company.
According to Fitch Ratings, a sale of Crown Resorts could allow the casino operator to keep its licence to run its new casino in Sydney’s Barangaroo district.