Star Entertainment has reportedly decided to stay clear of any effort to join a bidding war to gain control of troubled Crown Resorts.
Crown’s game of ownership a little too rich for Star (SMH)
A combined entity consisting of The Star Entertainment Group and Crown Resorts would create a behemoth gaming enterprise not just in Australia, but in the wider Asia gaming market, though market observers have flagged a number of regulatory hurdles that could hinder it from ever becoming a reality.
Australian operators, Star Entertainment and Crown Resorts have both agreed with regulators in New South Wales to cease all international junket operations and to go cashless in their casinos.
Australian casino operator The Star Entertainment has officially entered the race for Crown Resorts, proposing a $12 billion mega-casino merger. The company believes a merger with Crown represents a compelling value proposition for all shareholders by delivering between $150 million to $200 million if cost synergies per annum.
Private equity firm Blackstone has revised its proposal to buy out all of the shares in Crown, with a $12.35 cash per share bid, representing a $0.50 increase from its initial offer made in March this year.
Australian casino operator Star Entertainment said its gross gambling revenue was up 37 percent year-on-year in the five months from January to May, highlighting the resilience of Australia’s domestic market.
Shares in tourism-related stocks in Australia bounced on Thursday after the government announced a A$1.2 billion ($928 million) stimulus package that includes 800,000 subsidized half-price airfares.
Outside of the global pandemic, the trade war between Australia and China is casting another dark shadow over Australia’s already-strained VIP gaming industry, prompting operators to start looking elsewhere for recovery.
Matt Bekier, chief executive of Star Entertainment Group said his firm would try to boost its appeal to international tourists, once the borders were open again, to develop a new market by stepping up its pitches to VIP gamblers in Asia through its offices in Singapore and Hong Kong.
DFS Group will anchor the retail offering at Star Entertainment's under construction Queen's Wharf project in Brisbane, with a three-level T Galleria hosting some 100 brands.
Australia's Star Entertainment said it will now be able to host up to 10,000 guests in its casino areas in Sydney following the easing of Covid-19 mandated restrictions.