Crown Resorts accepts $8.9bn takeover bid from American private equity firm Blackstone

Australia’s biggest gaming operator Crown Resorts has accepted an $8.9bn takeover bid from American private equity firm Blackstone.

The Crown board unanimously recommends that shareholders now vote in favour of the deal, which will entitle them to $13.10 cash per share.

The scheme implementation deed as announced to the market this morning values Crown’s equity at approximately $8.9bn and bests an original offer made by Blackstone in March 2021 by more than $845m.

Crown chair Ziggy Switkowski said the deal represents good value for shareholders, if they vote in favour of it.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

“The Board has fully considered the Blackstone Transaction and unanimously recommends the proposal, subject to customary conditions such as an independent expert concluding the transaction is in the best interests of Crown shareholders and there being no superior proposal,” Mr Switkowski said.

“When considering any proposal, the Crown Board has consistently stated it is committed to maximising value for Crown shareholders.”

Crown’s Managing Director and CEO Steve McCann said the size of the offer reflected the power of the Crown brand.

“The announcement today represents a compelling offer for Crown’s shareholders to consider. The price appropriately reflects the value of Crown’s world-class assets and global reputation for premium service and experiences,” Mr McCann said.

“The agreement with Blackstone also highlights the strength of the Crown brand and confidence in our future as we emerge from some challenging times, which is welcome news for our people, customers and stakeholders.”

Source: 9News

Can’t stop reading? Read more