The directors of Crown Resorts have approved a substantial takeover bid from Blackstone Group, a well-known private investment firm. The transaction, estimated at an impressive $6.33 billion, will give Blackstone ownership of the Australian gaming behemoth.
This resolution follows protracted discussions. Blackstone initially proposed $11.85 per share in March 2021, but Crown sought a more favorable agreement. Blackstone increased their offer several times, but it wasn’t until their ultimate proposal of $13.10 per share that Crown’s board finally consented. This final valuation signifies a considerable premium over Blackstone’s initial bid and underscores Crown’s inherent worth in the marketplace.
Crown’s chairman, Ziggy Switkowski, voiced certainty in the arrangement, stating that the board collectively endorsed it to stakeholders. Naturally, the agreement still depends on regulatory clearances and the consent of Crown’s shareholders, but this marks a significant stride toward completing the acquisition.
The Crown directors have consistently emphasized maximizing value for their stakeholders, particularly as they manage the difficulties of the global health crisis and increased oversight. While notable advancements have been made, uncertainties regarding the company’s trajectory remain. Considering these factors, along with the inherent strength of the Crown name, the board views Blackstone’s proposal as a favorable outcome for its investors. The entirely cash-based framework offers both assurance and a substantial return.”