Australia’s Publishing & Broadcasting Limited is preparing to separate its gaming and media companies and a shareholder meeting to approve the split will be held in Melbourne on Friday. If approved, there will be a A$2 billion capital return to shareholders. Yesterday PBL confirmed it was undergoing due diligence and contract negotiations for at least one, and possibly three, US gaming businesses.

There has been speculation that PBL is looking to acquire a gaming operation in Pennsylvania, which could be either Harrah’s Chester Casino or the Prairie Meadows Racetrack & Casino, for around US$1.75 billion. A company statement said, “If this opportunity, and two other opportunities which PBL was also considering, were to proceed, then most of Crown's cash reserves would be deployed.” At least one purchase is likely to be completed before the end of the year although regulatory approval will take around 18 months.

Earlier this year PBL acquired nine Canadian casinos in partnership with Macquarie Bank. The company also opened its joint venture Crown Macau and is developing two further casino complexes in Macau. When PBL sold around 75% of its media assets last year most of the proceeds were earmarked for gaming opportunities in target markets. PBL shareholders will receive one share in Crown gambling business and one in Consolidated Media Holdings plus A$3 in cash for each share they own.
(E-11.21.07)

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