Fri. Mar 29th, 2024
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Just after the Victoria’s Royal Commission hearing into Crown Melbourne, the Star Entertainment Group has decided to withdraw its conditional proposal to merge with Crown Resorts.

The operator believes that the recent hearings have materially impacted the prospects of the Crown Melbourne to even retain the license to operate.

The proposal which was conditionally offered stipulated benefits of the shareholders and estimated cost synergies of between $150m to $200m per year. However, uncertainty of the Crown’s verdict has put an air of risk around the entire deal.

The Star intends to monitor ongoing inquiries and await results until the fate of the Crown Resorts is decided.

As per Gambling Insider, The Star issued the statement: “To date, The Star has had limited engagement with Crown on its proposal. Issues raised at Victoria’s Royal Commission into Crown Melbourne have the potential to materially impact the value of Crown, including whether it retains the licence to operate its Melbourne casino, or the conditions under which its licence is retained.”

It further added: the Star intends to focus on “its growth initiatives, including its world-class multi-billion dollar Queen’s Wharf Brisbane integrated resort (due to open in late 2022) and its Gold Coast masterplan.”

The Crown has become infamous for alleged money laundering issues inviting enquiry and investigation into its multiple Casino locations by various authorities.

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