ASX 200 edges higher, Crown falls, Pointsbet rises

The ASX 200 rose today, although Crown shares fell.

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The S&P/ASX 200 Index (ASX: XJO) went up by 0.1% to 7,394 points.

Here are some of the highlights from the ASX:

Crown Resorts Ltd (ASX: CWN)

The Crown share price went down around 2% after it was announced that Star Entertainment Group Ltd (ASX: SGR) was stepping away from its takeover offer.

Star was initially attracted to the “significant” potential strategic and value accretion benefits for shareholders of both companies, including estimated cost synergies of between $150 million to $200 million per annum. There was also the potential to create significant value from a sale and leaseback of an enlarged property portfolio.

To date, Star has had limited engagement from Crown about the takeover bid. It also said that issues raised at Victoria’s royal commission into Crown Melbourne have the potential to materially impact the value of Crown, including whether it retains the licence to operate its Melbourne casino or the conditions under which its licence is retained.

The ASX 200 share still believes there’s a lot of substantial benefits that could be unlocked by the merger, but there’s so much uncertainty about Crown that it can’t continue with its current offer.

However, Star said it remains open to exploring opportunities with Crown.

Star remains focused on its growth initiatives including its multi-billion Queen’s Wharf Brisbane integrated resort due to open in late 202 and its Gold Coast masterplan.

Pointsbet Holdings Ltd (ASX: PBH)

The Pointsbet share price went up 2.5% after announcing some US news.

Its New Jersey subsidiary has been authorised by the New Jersey Department of Gaming Enforcement to commence iGaming operations and it has launched the platform in that state. This follows the launch of iGaming in Michigan on 5 May 2021.

The ASX 200 share was pleased to reveal a lot of growth of iGaming, it said:

iGaming revenues in the United States have grown exceptionally since the repeal of Professional and Amateur Sports Protection Act in May 2018. Across New Jersey, Pennsylvania, Michigan, and West Virginia – all states in which Pointsbet has iGaming market access. iGaming revenues reached nearly US$900 million in the June 2021 quarter which if annualised would equate to greater than US$3.5 billion per annum.

Pointsbet also announced the appointment of Scott Vanderwel as the new CEO of Pointsbet Canada.

Myer Holdings Ltd (ASX: MYR)

The Myer share price fell around 2% today after revealing it had secured a 10-year lease on a new 40,000sqm facility in Victoria which will act as its new national distribution centre for both its stores and online fulfilment.

This move follows enhancements to its online operations that were undertaken last year and changes to international freight arrangements earlier this year.

It will be a new state-of-the-art facility that has over 100,000 stock keeping units (SKUs). Myer said it will lead to new widespread customer benefits and efficiencies anticipated for both the stores and online businesses. It will benefit from several automated solutions.

Myer expects around 70% of its online fulfilment will be performed by this new distribution centre. It’s expected to lead to a reduced cost per order, whilst stores will be important for click and collect options as well as last mile deliveries in some areas.

Construction of the site is underway. It’s expected to be able to start using the facility from August 2022.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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