Crowns Resorts stakeholders want more than $8.4bn from Blackstone

Crowns Resorts stakeholders want more than $8.4bn from Blackstone

Crown Resorts urges the Blackstone Group to boost its buyout bid

Crown Resorts – Blackstone Negotiation 

Crown Resorts has rejected Blackstone’s third acquisition offer but will release its books, hoping that the private equity firm would enhance its $8.46 billion offerings. On Thursday morning, the James Packer-backed real-money casino company stated that Blackstone’s $12.50 per share bid received a fortnight ago “does not reflect compelling value for Crown shareholders.”

Crown Resorts is one of Australia’s leading entertainment conglomerates, contributing significantly to the country’s economy. Crown Australia owns and runs two of the country’s finest integrated resorts, Crown Melbourne and Crown Perth, as well as Crown Sydney, Sydney’s newest premium hotel resort and dining complex. Crown also owns and manages Crown Aspinalls in London, an expensive private members club in the heart of the West End entertainment district. Crown also owns a 50% stake in the UK-based Aspers Group and a 20% stake in Nobu. Crown owns 100% of Betfair Australasia, DGN Games, and Chill Gaming (50 percent ).

Crown Resorts said that while Blackstone’s amended takeover bid still does not provide “compelling value” for its shareholders. The operator has granted access to non-public information to enable the US private equity firm to craft a more compelling offer. Crown stated that there is no certainty that Blackstone will return with a more significant cash offer than the present AS12.50 per share. This offer increased from a February offering of $11.85 a share, which valued the firm at $8 billion.

“However, the Crown Board has provided Blackstone access to non-public material to conduct initial due diligence on a non-exclusive basis to create a revised proposal that adequately reflects Crown’s value,” the firm said in an ASX statement.

Crown has also refused to give Blackstone an exclusive peek at its books, allowing other suitors, such as Sydney casino operator The Star Entertainment Group, to submit competing bids. Based in New York, Blackstone already owns 10% of Crown and has courted the scandal-plagued casino operator for months. In March, it launched its initial takeover bid at $11.85 per share and boosted it to $12.35 per share in May, but Crown rejected both as too low.

New Leadership at Crown Resorts

Crown shares were trading slightly below $10 before the announcement of Blackstone’s last offer last month. They ended Thursday’s session with a price of $11.02. While Crown rejected prior proposals, Blackstone now faces a new leadership team at Crown following the retirement of former executive chairman Helen Coonan in the wake of scathing revelations in Victoria’s Crown royal commission. 

Ziggy Switkowski, a former Telstra and Optus executive, was appointed chairman on Wednesday following approval by state gaming regulators. He joins Steven McCann, a former Lend Lease executive, who joined the company in June.

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About Lou De Aguila

Lou Ramon Aguila is a contributor for Golden Casino News. He has a degree in BSBA Legal Management with great interest in high-profile legal cases involving sports personalities. An ultimate sports junkie, he covers just about everything in the sporting world with an emphasis on the NBA, NFL, and MLB. In his past time, Lou loves to read manga, watch anime and critique pro-wrestling matches.