The Star Casino group is looking to expand into Victoria and Western Australia, officially throwing their hat in the ring for Crown Resorts.
A massive merger proposal has been made public on the ASX this morning.
The Star group, which owns casinos across Sydney, Brisbane and the Gold Coast, is proposing a $12 billion merger with Crown, that would see it grow to span seven properties across four states.
ARTICLE CONTINUES AFTER THIS ADVERTISEMENT
The Star’s Chairman John O’Neill says that bringing the two together would create an estimated $12 billion ASX-listed national tourism and entertainment leader.
“A merger of The Star and Crown would result in significant scale and diversification and unlock an estimated $2 billion in net value from synergies.
“With a portfolio of world-class properties across four states in Australia’s most attractive and populated catchment areas and tourism hubs, 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,” Mr O’Neill said in a statement.
It follows a saga of turmoil for James Packer’s Crown Resorts, with the Sydney venue having its licence suspended over money-laundering failures.
Meantime, royal commissions are set to take place in Melbourne and Western Australia this week.
The Star is now up against US company Blackstone to essentially take over the gaming and hospitality giant.
Blackstone submitted an unsolicited takeover bid for Crown back in March worth around $8 billion, but it’s understood they’ve since upped that.
The Star’s deal would see shares valued at around $14 for Crown shareholders, up from where shares closed at just over $12 last week.
The Crown Board says it is considering the proposal, but shareholders don’t need to take any action at the moment.