Private equity giant Blackstone has re-entered the bidding war for Australian gaming company Crown Resorts, proposing an enhanced offer of A$12.50 in cash for each share. This newest proposal, arriving after Crown declined prior bids in March and May, assesses the company’s worth at approximately US$9.11 per share.
Blackstone’s proposition hinges on several crucial elements. Firstly, they are requesting exclusive permission to examine Crown’s financial records in detail. Secondly, the transaction requires approval from Blackstone’s internal investment committee.
However, the most significant obstacle might be securing unanimous support from Crown. Blackstone seeks the full backing of the board, with each member committing their vote and signing a legally enforceable contract. This agreement is comprehensive, encompassing aspects from regulatory clearances to the critical casino operating permits.
Currently, Crown is maintaining a cautious stance. In an official statement, they have indicated that the board has not yet determined if the offer is satisfactory. They will be carefully evaluating the price, the conditions, and engaging in discussions with all stakeholders, including regulatory bodies, before reaching any conclusions.
Shareholders of Crown Resorts can disregard the current proposition. Blackstone’s acquisition remains uncertain.
The business also stated that regulatory approval in Victoria, New South Wales, and Western Australia would be necessary for the transaction to proceed. Blackstone is reportedly already engaged in discussions with them.
