The Star estimates its shares are worth about AU$5, which could potentially mean AU$14 per Crown share. There’s also a cash alternative of AU$12.50 per Crown share, subject to a cap equal to 25% of Crown’s total shares on issue.

The merger proposal would result in pro forma ownership of 59% for Crown shareholders and 41% for Star shareholders, and the board would be comprised of directors of each of the companies.

The merged entity would aim to deliver between AU$150m to AU$200m of cost synergies per annum with an estimated net value of AU$2bn.

“A merger of The Star and Crown would result in significant scale and diversification, and unlock an estimated $2bn in net value from synergies,” said The Star’s chairman John O’Neill. “The combined group would be a compelling investment proposition and one of the largest and most attractive integrated resort operators in the Asia Pacific region.”

The Star has stated the merged corporation would have an enhanced range of products to offer to both domestic and international markets, as well as “unlock significant value from a sale and leaseback of the enlarged property portfolio."

According to the announcement released by Crown, the operator is still considering the merits of the merger proposal, adding: “It will now commence a process to assess the merger proposal, having regard to the value and terms of the proposal and other considerations.”

Crown also has other merger offers on the table, including one from Blackstone Group, and must consider itself incredibly fortunate to have so many offers – given its miserable regulatory failings in recent years.