Place your bets

22 March 2021 By Katrina Hamlin Follow @KatrinaHamlin

The buyout shop’s $6.2 bln offer for Crown is highly conditional, sensibly so given the casino operator’s regulatory nightmare. But the low-ball bid could encourage others like Sands to try their luck. A knockout price would give Blackstone a good exit on its existing 10% stake.

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Crown Resorts said on March 22 that it had received an unsolicited and non-binding takeover offer from U.S. private equity firm Blackstone, valuing the Australian casino operator at about A$8 billion ($6.2 billion).

The tentative cash bid of A$11.85 per share is a 20% premium to the closing price on Friday. Crown shares rose 17% to A$11.57 in morning trade after the announcement was made.

Blackstone’s conditions for its proposal include a unanimous recommendation from Crown’s board and regulatory confirmation that a Blackstone-owned Crown would be a suitable owner-operator for the Sydney, Melbourne, Perth licences and other gaming approvals.

Blackstone owns 9.99% of Crown which it acquired from Melco Resorts in April 2020.

Crown said it would assess the proposal and has appointed UBS as financial adviser.

Context News

The tentative cash bid of A$11.85 per share is a 20% premium to the closing price on Friday. Crown shares rose 17% to A$11.57 in morning trade after the announcement was made.

Blackstone owns 9.99% of Crown which it acquired from Melco Resorts in April 2020.

Crown said it would assess the proposal and has appointed UBS as financial adviser.

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