Blackstone raises takeover bid for Crown Resorts to $ 6.5 billion

Blackstone raises takeover bid for Crown Resorts to $ 6.5 billion

U.S. private value giant Blackstone Inc. drawn nearer to winning in its almost yearlong quest for grieved Australian casino operator Crown Resorts Ltd. in the wake of improving its proposition a third an ideal opportunity to A$8.9 billion ($6.5 billion). The buyout firm, which as of now claims 10% of Crown, lifted its bid to A$13.10 per share, from a November offer of A$12.50, the Melbourne-based casino organization said in an assertion Thursday. Crown shares rose 8.7% to A$12.64 in early evening time exchanging Sydney subsequent to shutting at A$11.63 on Wednesday.

Crown Resorts Set to Back Sweetened Blackstone Bid: M&A Snapshot

Crown said it will now engage with Blackstone, and will recommend shareholders accept the bid if a binding offer of at least A$13.10 a share is made. A deal would end a sorry chapter in Crown’s history after it was found unsuitable to run its Sydney casino and given two years to address a litany of wrongdoing at its flagship Melbourne casino, including facilitating money laundering and underpaying taxes.

Nonetheless, if Blackstone can reform Crown and appease regulators, the prize is clear: casino monopolies in two Australian cities and a gleaming A$2.2 billion resort on Sydney’s waterfront.

An agreement to sell to Blackstone would also offer Crown’s biggest shareholder, billionaire James Packer, a clean exit from a company that was once synonymous with his family name. Packer, who owns about 36% of Crown, has largely retreated from corporate life in recent years to deal with mental health issues.

“Crown remains a high-quality and valuable asset and is worth more to private equity than it is ever going to be worth listed,” said Steve Johnson, chief investment officer at Forager Funds Management in Sydney, which owns Crown shares. “The increase in offer price is a welcome step and we are supportive of the board continuing a push for an appropriate firm offer.”

Crown’s gambling operations began to unravel with a crackdown by authorities in mainland China in late 2016, leading to the arrest and conviction of more than a dozen employees. By the end of that year, Crown had scrapped a spinoff of its international assets, including a stake in Macau casino operator Melco Resorts & Entertainment Ltd., and started a retreat to Australia.

Blackstone made its first approach for Crown in March last year, with an initial offer of A$11.85. That and a subsequent offer in May were rejected as two low. In July, rival Australian casino operator Star Entertainment Group Ltd. scrapped a merger proposal with Crown, while an offer from Oaktree Capital Management LP to fund the buyout of Packer’s stake also didn’t proceed.

Check the latest news about business news section for best information.

The best source of news -
Compare items
  • Total (0)