AUSTRAC expands probe into Crown suitor Star casino

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On Thursday, the James Packer-backed Crown received an $8.9 billion offer from private equity group Blackstone, which has the support of Crown’s board.

The Star withdrew its $12 billion merger offer last year as Crown’s licences for its Melbourne and Perth casinos came under threat from royal commissions that examined criminal activity by its customers and other malpractice, but it has said it is still interested in combining the two casino outfits.

The Star’s inquiry by ILGA was triggered by allegations of similar governance breaches.

“The Star withdrew its conditional, non-binding indicative proposal to merge with Crown on 23 July 2021,” a Star Entertainment spokesman said on Thursday.

“As we have said consistently since that time, The Star remains open to exploring potential value-enhancing opportunities with Crown.”

Mr Packer’s private company, CPH, also appears to be hoping for rival bidders such as The Star to emerge in response to Blackstone’s latest offer.

“The assets of Crown Resorts are world class and this is reflected in the significant interest in the company,” the company said in a statement on Thursday.

Morningstar analyst Angus Hewitt flagged that the Crown board’s unanimous support for the Blackstone offer does not mean it is a done deal.

“The increased offer is non-binding and remains conditional on completion of due diligence, support from shareholders, unanimous approval from the board, final approval from Blackstone’s investment committees and approval from state gaming regulators.”