Blackstone (NYSE: BX) is considering acquiring Star Entertainment but may wait until the casino operator declares insolvency.
Possible Acquisition Amid Financial Struggles
Blackstone (NYSE: BX) is reportedly eyeing the struggling Star Entertainment but may wait until the Australian casino operator enters administration. Recent rumors also suggest Cerberus Capital Management is negotiating with Star’s creditors to acquire some of its AU$400 million debt.
Although Star recently sold assets for $37.5 million, analysts believe its cash reserves could last only weeks. If insolvency occurs, Blackstone might step in.
Regulatory Hurdles May Ease
Blackstone already owns Crown Resorts, which operates casinos in Melbourne, Perth, and Sydney. Normally, New South Wales (NSW) laws prevent a single operator from controlling both casinos in the region. However, with Star nearing collapse, regulators may reconsider.
Blackstone is also reportedly more interested in Star’s extensive electronic gaming machines (EGMs) rather than its casino properties. It could ease regulatory concerns by selling Star’s physical casinos while keeping its gaming machine business.
Blackstone’s Experience in Gaming
Blackstone has a strong track record іn the casino industry. It previously owned the Cosmopolitan іn Las Vegas before selling its operating rights tо MGM Resorts (NYSE: MGM). The firm’s real estate trust still owns most оf Cosmopolitan’s property and a majority stake іn Bellagio’s real estate.
In 2021, Blackstone paid $3.89 billion for the property assets оf Aria and Vdara оn the Las Vegas Strip, further expanding its presence іn the gaming sector.
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