Crown Resorts board endorses $9 billion takeover offer from US-based investment group

January 13, 2022

Entertainment / Finance / Hospitality /

A bid by US-based global investment business Blackstone to acquire the Crown Resorts looks set to be agreed with the casino and entertainment group’s board having given provisional endorsement to the offer.

Blackstone’s $13.10-a-share cash offer, which gives Crown a value of at least $8.87 billion, follows threee previous takeover attempts by the private equity firm.

In a statement this morning, Crown advised “following consideration of the revised proposal, including obtaining advice from its financial and legal advisers, the Crown board considers that it is in the interests of Crown’s shareholders to engage further with Blackstone on a non-exclusive basis.

“Accordingly, Crown has decided to provide Blackstone with the opportunity to finalise its due diligence inquiries and negotiate the terms of an implementation agreement so that Blackstone can put forward a binding offer.”

Advising that the latest offer reflected Blackstone’s review of confidential information accessed during its initial due diligence, the statement added “should Blackstone make a binding offer at a price of no less than $13.10 cash per share then it is the Crown board’s current unanimous intention to recommend that shareholders vote in favour of the proposal in the absence of a superior proposal and subject to an independent expert concluding that the proposed transaction is in the best interests of Crown shareholders.”

Blackstone, which first bed to acquire Crown in March 2021, is hoping to exploit an expected recovery in gaming and hospitality when Australia emerges from COVID-19.

Crown, which owns casinos in Perth, Melbourne and Sydney, has endured massive scrutiny over the past two years, with NSW Independent Liquor and Gaming Authority finding last year that it was unfit to hold a licence for its new Sydney casino.

The probe by the gambling wtachdog found Crown facilitated money laundering at its casinos, worked with junket operators linked to organised crime and endangered its staff in China.

A Victorian royal commission in October also found Crown unfit to run its Melbourne casino, but gave Crown two years to address a litany of shortcomings.

A royal commission into Crown’s operations in Perth is due to report in March.

Blackstone already owns 10% of Crown, which controlled by James Packer through a 37% stake.

Image: Melbourne's Crown Casino.

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31st March 2021 - Macarthur FC and Sydney Swans to reject gambling sponsorships

10th February 2021 - Inquiry finds Crown Resorts not suitable to operate new Sydney casino

1st December 2020 - Western Australia’s leading health groups urge Crown Perth to make casino entirely smoke-free

23rd October 2020 - Casino operator Crown Resorts under investigation for money laundering

19th March 2020 - Crown Casinos enjoy ‘exemptions’ to remain open in Melbourne and Perth

14th January 2020 - Formula 1 secures first ever gambling sponsor

3rd December 2019 - Cricket Australia refuses gambling sponsor for Big Bash League

6th August 2019 - Singapore Government approves maintenance of casino duopoly as integrated resorts plan expansion

2nd August 2019 - Victorian Government to investigate Crown casino crime allegations

27th June 2019 - Funlab launches new Juke’s Karaoke Bar concept at Crown Melbourne

30th March 2019 - Delaware North receives regulatory approval for new Darwin Casino

6th March 2019 - Queensland Government looks for global interest in new casino-based Gold Coast tourism hub

27th April 2018 - Crown casino fined for ‘blanking’ slot machines

21st March 2018 - James Packer resigns from Crown Resorts citing mental health reasons

27th July 2017 - Adelaide Casino to be transformed in $330 million expansion

26th June 2017 - China jails Australian Crown Resorts staff for promoting gambling

4th October 2016 - Gambling revenue dips at Crown Perth as visitor numbers fall

15th August 2015 - Ticketmaster partners with Crown Resort venues in Melbourne and Perth

27th May 2013 - Crown casino to shed 50 jobs in Melbourne

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