Blackstone To Acquire Rest Of Crown Resorts

Blackstone To Acquire Rest Of Crown Resorts

Renowned Australian casino developer Crown Resorts reached an agreement to enter takeover talks with US investment giant Blackstone, the Financial Times reported.

The deal is valued at about $8.9 billion AUD ($6.5 billion USD), per the report. 

Crown Resorts Limited announced that it had received a revised non-binding proposal from a company “on behalf of funds managed and advised by Blackstone Inc. and its affiliates (together, Blackstone),” to acquire all of the shares in Crown “by way of a scheme of arrangement” at a price of A$13.10 cash per share.

Blackstone is the owner of the Bellagio in Las Vegas.

According to the Financial Times, the price is an increase of $0.60 cash per share compared to the previous Blackstone offer of $12.50. There was a reported bidding war between Blackstone and a company called Star Entertainment Group.

“It is the Crown Board’s current unanimous intention to recommend that shareholders vote in favor of the proposal in the absence of a superior proposal and subject to an Independent Expert concluding (and continuing to conclude) that the proposed transaction is in the best interests of Crown shareholders,” the company said.

Blackstone already owns 10% of Crown Resorts. Prominent billionaire James Packer, who once engaged to Mariah Carey, owns a third of the company.