MELBOURNE: Australian casino operator Star Entertainment Group said on Monday it had proposed to buy rival Crown Resorts Ltd in a deal valued at more than A$9.48 billion ($7.44 billion).
The country's No. 2 casino group offered 2.68 of its shares for each Crown share, implying a potential value of over A$14 a share based on its estimate that its share price would be worth more than A$5, said Star, whose shares last closed at A$3.91.
Star's approach includes a cash alternative of A$12.50 per share for up to 25% of Crown. The target company's shares closed at A$12.12 on Friday.
The announcement came minutes after U.S. private equity firm Blackstone Group raised its takeover offer for Crown to A$12.35 per share. ($1 = 1.2739 Australian dollars)- Reuters