Merger’s a Packer whacker

JAMES Packer’s stake in beleaguered casino giant Crown Resorts faces being slashed if a bold $12bn proposal to merge with rival Star Entertainment Group wins approval.

Under Star’s proposal announced on Monday, the billionaire’s shareholding in a potential new entity would be limited to 10 per cent, down from a 37 per cent stake held by his private investment vehicle Consolidated Press Holdings.

The conditional, nonbinding, indicative proposal is conditional on: “Agreeing with Consolidated Press Holdings ... and relevant gaming authorities appropriate undertakings in relation to any CPH shareholding in MergeCo above The Star’s shareholder cap of 10 per cent”.

Mr Packer’s influence over the board – despite quitting it in 2018 – was labelled “disastrous” in findings from last year’s NSW Independent Liquor and Gaming Authority probe.

The inquiry deemed Crown not fit to hold a gaming licence for new Sydney complex at Barangaroo and concluded the reclusive businessman was an unsuitable person to be associated with the company.

It found management failings had allowed Asian highroller junkets to launder funds through Crown’s Melbourne and Perth casinos, and Mr Packer (pictured) was a key driver in the push to secure more of them. It is understood he is open to selling down his stake in Crown.

Star said the deal could pave a way for Crown to gain a casino licence for the Sydney venue and better comply with state gaming regulations.

Crown said it had formed a view on the offer.

The Australian Competition and Consumer Commission (ACCC) confirmed it would review the proposal if Crown accepted the deal.

“Star Entertainment Group has approached the ACCC regarding its indicative proposal to merge with Crown Resorts,” the ACCC said.

“We will wait for a submission and commence a public review after that, if the matter progresses.” not