Crown Receives Merger Proposal from Rival Star; Blackstone Lifts Bid
By Mike Cherney
SYDNEY--Australian casino operator Crown Resorts Ltd. said it
received a proposal from rival The Star Entertainment Group Ltd. to
merge the two companies, just as Blackstone Group Inc. increased
its previously announced bid for Crown.
Crown, which operates casinos in Melbourne and Perth and
recently completed a new skyscraper on Sydney's waterfront, said it
has not yet formed a view on the merits of the proposals.
Crown also announced that it has appointed Steve McCann as its
new chief executive. Mr. McCann is currently group chief executive
of real-estate developer Lendlease Group.
Star's merger proposal contemplates a nil-premium share exchange
ratio of 2.68 Star shares for each Crown share. The merger proposal
also includes a cash alternative of 12.50 Australian dollars
(US$9.81) per Crown share, subject to a cap of 25% of Crown's total
Assuming the cash alternative is fully taken up, the proposal
would result in the merged entity being 59% owned by Crown
shareholders and 41% by Star shareholders. Star said the share
exchange would value Crown shares at more than A$14 per share.
Meanwhile, Blackstone said it would increase its offer to
A$12.35 per share for Crown. That's an increase of 50 Australian
cents per share over its prior offer.
Write to Mike Cherney at email@example.com
(END) Dow Jones Newswires
May 09, 2021 18:58 ET (22:58 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.