Crown Resorts accepts Blackstone’s takeover offer of USD 6.3 billion

By Nikita Chaurasia  | Date: 2022-02-14

Crown Resorts accepts Blackstone’s takeover offer of USD 6.3 billion

Major Australian entertainment group Crown Resorts Ltd has reportedly agreed to a buyout deal of USD 6.3 billion from private equity group Blackstone Inc which already held about 10% of the former.

This deal paves the exit of the company’s largest shareholder, James Packer, from the Australian casino firm besieged by scandals and regulatory setbacks, a decade and a half when he started Crown. The AUSD 13.10 cash per share bid puts Crown below its value in 2019, before COVID-19 restrictions and damaging regulatory probes it encountered.

It is to be noted that due to illegal conduct, the gambling license for Crown's premier AUSD 2.2 billion Sydney-based casino skyscraper is still barred from operating, over a year after it was supposed to start. Whereas the Melbourne casino, the company’s main earner, is mandated to function with a government-appointed supervisor for two years.               

Angus Gluskie, Managing director of White Funds Management, which has Crown shares, stated that a new ownership structure is a critical step in addressing regulatory concerns that have been highlighted.

For the uninitiated, Packer’s journalist grandfather Frank Packer started the Australian Consolidated Press in 1936 which would go on to dominate the country’s media space for over half a century. However, James split the parent company with the goal of turning Crown Ltd into a leader in the casino gambling industry.

Crown soon take a major hit as it tried to expand aggressively in Macau, Las Vegas, and Australia, with 19 of the staff jailed in China for breaking the laws which eventually led to the banning and marketing of gambling.

Blackstone will have multiple legal challenges to tackle if the deal is finalized. The buyout still requires regulatory approval. A major shareholder vote on the matter is expected in the June quarter.

Source credits: https://money.usnews.com/investing/news/articles/2022-02-13/australias-crown-resorts-backs-6-3-billion-blackstone-buyout-offer

About Author

Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More >>

More News By Nikita Chaurasia

L&T Technology Services partners with Qualcomm to amplify 5G adoption

L&T Technology Services partners with Qualcomm to amplify 5G adoption

By Nikita Chaurasia

L&T Technology Services Limited has recently announced that it is teaming up with Qualcomm Technologies, Inc., the world’s leading wireless technology innovator. With the latest collaboration, the firm plans to offer end-to-end solutions...

PNAS, Straive partner to deliver end-to-end content production services

PNAS, Straive partner to deliver end-to-end content production services

By Nikita Chaurasia

Renowned U.S.-based nonprofit and non-governmental organization, NAS (National Academy of Sciences), has reportedly collaborated with Straive, one of the leading technology-driven solutions providers for Content, EdTech, and Data. With this acquis...

Japan pushes innovations in 'deep tech' sector with solar cell technology

Japan pushes innovations in 'deep tech' sector with solar cell technology

By Nikita Chaurasia

Amid the most promising next-generation solar cell technology innovations, Enecoat Technologies, a provider of materials development services in Japan, is reportedly developing perovskite. Following its completion, the Kyoto-located start-up expec...

GIC to acquire majority shares in opulent Sani/Ikos properties

GIC to acquire majority shares in opulent Sani/Ikos properties

By Nikita Chaurasia

Singapore's sovereign wealth fund, GIC has agreed to pay around $2.2 billion to buy a majority stake in Sani/Ikos Group, a Mediterranean luxury resort operator, marking the largest transaction in the European resort market since the Covid-19 pand...

Excelra, Patcore partner to offer enhanced digital insights to customers

Excelra, Patcore partner to offer enhanced digital insights to customers

By Nikita Chaurasia

Excelra, a data and analytics solutions provider, has recently announced its partnership with Patcore, Inc., to provide better access to its analytics products and scientific data for customers in Japan. For the unversed, Excelra is one of the top...