Blackstone Increases its Bid for Crown Resorts
Crown Resorts revealed earlier today that it received an adjusted non-binding proposition from Blackstone and its partners to purchase all remaining shares of Crown for A$13.10 per share in cash.
This enhanced proposal signifies a richer agreement compared to Blackstone’s opening bid of A$12.50 per share in November 2021. The U.S.-based private equity group, which currently possesses a 10% interest in the Australian gaming company, has now elevated its offer to a sum of A$8.9 billion, as reported by Bloomberg.
Crown’s board of directors, following consultations with financial and legal experts, deems it advantageous for shareholders to participate in further, non-exclusive dialogues with Blackstone.
“Contingent upon Blackstone presenting a binding proposal of no less than A$13.10 cash per share,” Crown declared, “and contingent on both parties formalizing a binding Implementation Agreement with terms agreeable to Crown, the Crown Board’s present aim is to unanimously advise shareholders to endorse the proposition unless a superior offer emerges and provided an independent specialist concludes (and maintains the conclusion) that the transaction serves the best interests of Crown shareholders.”
The suggested plan from November and its updated version maintain identical stipulations, encompassing thorough examination, complete endorsement from the Crown Resorts board, and the green light from authorities in Victoria, New South Wales, and Western Australia.
Despite this, there’s no assurance these talks will yield a concrete agreement or one that pleases Crown investors. The Crown board prioritizes maximizing returns for its shareholders and will meticulously evaluate any proposition that aligns with this objective.
