Investors revisit Crown Star merger dream
Embattled gaming group Crown Resorts and Star Entertainment are no strangers to merger rumors, with the latter launching a A$12 billion bid to bring Australia's largest casino operators together in 2021.
In November 2023, Crown Group said it would lay off nearly 200 people in Sydney and shorten its business hours. This got the star bull talking. Will Blackstone, which took Crown private last year, be concerned enough to seek cost synergies from its cross-border casino rivals?
There's no sign that any deals are in the works - just that star investors are keen on any move that might push the company's share price higher. In just over two years, its market capitalization went from chasing rivals at $3.5 billion to just $1.46 billion as of 1/12/2023. When Star looked at Crown in 2021, management estimated the merger would deliver $150 million to $200 million in annual cost synergies and unlock $2 billion in net worth - or more than Star's current market capitalization. Management added that this will deliver balance sheet strength and free cash flow to accelerate debt repayment and unlock value from sale and leasebacks on the expanded real estate portfolio.
Place my bets, Star Entertainment Group Ltd - ASX: SGR, page-20
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49.0¢ |
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0.010(2.08%) |
Mkt cap ! $1.405B | |||
| Open | High | Low | Value | Volume |
| 49.5¢ | 52.0¢ | 49.0¢ | $20.19M | 40.38M |
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| No. | Vol. | Price($) |
|---|---|---|
| 16 | 804608 | 48.5¢ |
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| Price($) | Vol. | No. |
|---|---|---|
| 49.5¢ | 76192 | 1 |
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