Fri. Mar 29th, 2024
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A conditional, non-binding, indicative proposal has been submitted by the Star Entertainment Group with the intent to merge with Crown Resorts.

The Star Entertainment offers 2.68 of its own shares per Crown share with the estimation that each Star share is worth AU$5.

The proposal also envisions a cash proposal of AU$12.50 per Crown share, subject to 25% cap on Crown’s total shares on issue.

The merger is likely to create a company worth AU$12bn (US$9.4bn), according to various reports.

According to Gambling Insider, Star’s chairman John O’Neill said: “A merger of The Star and Crown would result in significant scale and diversification, and unlock an estimated $2bn in net value from synergies. 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.”

The Crown, on the other hand, while stating that it is still exploring the merits of the proposal, added: “It will now commence a process to assess the merger proposal, having regard to the value and terms of the proposal and other considerations.”

Notably, Crown has been under the scanner for quite some time now owing to various regulatory failures. It has also in the past, received merger proposal from the BlackStone Group, which is still under consideration.