Australia’s Crown Resorts backs $6.3 billion Blackstone buyout offer By Reuters

© Reuters. FILE PHOTO: The logo of Australian casino giant Crown Resorts Ltd adorns the hotel and casino complex in Melbourne, Australia, June 13, 2017. REUTERS/Jason Reed/File Photo

(Reuters) -Australia’s largest casino operator Crown Resorts Ltd said on Monday it would back a A$8.87 billion ($6.3 billion) binding takeover offer from U.S. private equity firm Blackstone (NYSE:) Inc.

Shareholders of Crown, which has faced damaging misconduct inquiries in every state it operates in and has also been hammered by a COVID-19-led drop in visitors, will get A$13.10 a share, a 5.7% premium to the stock’s last close.

The news looks set to end a months-long saga which included three earlier bids from Blackstone, rival Star Entertainment withdrawing a A$9 billion offer, and Oaktree Capital calling off talks to buy out Crown founder James Packer’s stake.

The latest offer price is 10.5% higher than Blackstone’s first A$11.85 apiece bid in March last year.

“The all-cash offer provides shareholders with certainty of value,” Crown Chairman Ziggy Switkowski said in a statement.

The deal will go ahead after an independent expert deems the offer is suitable for shareholders, as well as approvals from Australia’s Foreign Investment Review Board and casino regulators, Crown said.

A shareholder meeting to vote on the deal is expected to be held in the second quarter, it added.

($1 = 1.4025 Australian dollars)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.