Two competing casino establishments based out of Australia, Star Entertainment Group Ltd., and Crown Resorts Ltd., have drawn themselves into a bidding war. This conflict between the gambling establishments has scaled to a billion-dollar bidding war between three prominent establishments wanting a share of Crown Resorts. The other gambling establishments adamant on acquiring the holdings of Crown Resorts are Blackstone Group Inc. and Oaktree Capital Management.
The bidding wars began when an incriminating inquiry on Crown in February 2021 revealed its incompetency in running its new casino operations in Sydney, Australia. This inquiry was imposed due to various concerns of money laundering in the casino’s establishments.
The financially distressed establishment of Crown Resorts hasn’t been profitable in the gambling industry. This issue has caught the attention of other prominent profitable gambling establishments.
If Crown Resorts is successful in getting authorization for gambling, Star Entertainment proposes two establishments. Both Crown and Star would be operational in the metropolis of Sydney. Initially, Star Entertainment revealing its strategies for Crown Resorts, said that their offer stands at a market price value of AUD 12 billion. Star intends to sell and lease back the property and cut costs in the establishment. It is proposing ownership of 25% of the casino Crown Resorts.
The US-originated private equity fund, Blackstone Group, has proposed a counteroffer for Crown with a price value of Australia $8.36 billion. This Monday, 10th May 2021, Blackstone proposed a fresh proposal upping its initial offer and is willing to invest Australian $12.35 per share.
As the casino Crown faces grave ownership pressure, many feel that the establishment that shouldn’t shut down completely. The Crown accounts for 12% of taxable income for the Australian state of Victoria and employs about 11,500 people in the state.
In a strategic game plan, Sydney’s Star Entertainment wants to eliminate the competition in the industry by investing in Crown casino and playing an active part in accelerating the gambling market of Australia.
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