Blackstone Offers $6 Billion Bid for Crown Resorts
The Australian casino powerhouse, Crown Resorts, has attracted a takeover proposal from the US private equity behemoth, Blackstone, amounting to $8 billion AUD (equivalent to $6.18 billion USD). This proposition, valuing Crown at $11.85 per share, signifies an almost 20% increase compared to the company’s recent share price performance.
Blackstone, already possessing a stake of approximately 10% in Crown Resorts, is well-acquainted with the realm of high-roller gaming and entertainment. The firm’s portfolio boasts numerous properties in Las Vegas, encompassing legendary establishments such as the Bellagio and MGM Grand.
This offer arrives at a juncture when Crown is endeavoring to overcome a string of controversies and regulatory hurdles. The company has acknowledged that it will thoroughly evaluate the proposition, but the ultimate determination lies with James Packer, who maintains a controlling 37% ownership in Crown.
Industry experts appear to suggest that an agreement with Blackstone could serve as the much-needed rescue for Crown to navigate its present difficulties, potentially mitigating some of the primary concerns highlighted in the Bergin Report, a scathing investigation into the company’s operations.
While the agreement between Crown Resorts and CPH has dissolved, with CPH appointees departing Crown’s governing body, Fitch Ratings experts suggest Australian regulatory bodies would favor a full CPH divestiture from Crown. Such action would permanently sever the link between the entities, a move likely perceived favorably by regulators.