Home / ASX / Crown Resorts moves to accept Blackstone’s takeover bid

Crown Resorts moves to accept Blackstone’s takeover bid

ASX

The Crown Resorts (ASX:CWN) board has announced its intention to accept the “revised non-binding proposal from Blackstone to acquire all of its shares by way of a scheme of arrangement at $13.10 cash per share.

It’s been a long-running saga, with this the fourth bid from Blackstone, whose previous offers were deemed not compelling by Crown management. With Blackstone increasing its bid by 60 cents a share to $13.10, the offer is a lot more compelling. Crown even says it will encourage Blackstone to make a binding bid. If Blackstone makes a binding offer of the same value or more, Crown said “its board would unanimously recommend investors accept.”

Crown shares surged on the back of the news, closing up almost 9%. The new offer now puts Blackstone in pole position to take Crown and steer it back to its former glory.

  • If the bid goes ahead, it will end James Packer’s reign as a major shareholder with the company, which has been tainted by a money-laundering scandal and the links to criminal organisations in China who helped bring in high-rolling gamblers.

    Following the revelations, Crown shares tumbled to a low of $7.60 during March 2020, but have since recovered to $12.63, a 66% increase. There are no other groups currently vying to buy Crown. Star Entertainment Group (ASX: SGR) and asset manager Oaktree Capital last year made unsuccessful bids.




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