Blackstone Group Incorporated increases its stake in Crown Resorts Limited
US private equity firm The Blackstone Group Incorporated has reportedly increased its bid to acquire Australian casino operator Crown Resorts Limited by another $300 million.
Last month, the New York-headquartered investor was denied his previous offer of about $6.2 billion, but has now returned with an offer worth about $6.5 billion, according to a Bloomberg news report. will acquire all issued shares of the gambling giant at an individual price in the region of $9.56.
Crown Resorts Limited is reportedly responsible for Crown Melbourne and Crown Perth gambling establishments in Australia, as well as the prestigious Crown London Aspinalls hotel in the UK. However, the Sydney operator is said to have suffered recently after being denied a casino license for its new Crown Sydney establishment over allegations that it may have been involved in a range of money laundering offences. money related to his past use of foreign entertainment. enterprises.
Currently, Crown Resorts Limited, which is engaged in a wide-ranging corporate reform program, has said it intends to discuss a new proposal with The Blackstone Group Incorporated and may eventually accept the advance. The news allegedly pushed the casino operator’s share price up 8.7% this morning to a 25-month high of around $9.22.
Blackstone Group Incorporated is reportedly already the second-largest shareholder of Crown Resorts Limited, although its current 9.99% stake is paltry compared to the roughly 37% stake held by controversial Australian businessman James Packer, the founder of the Melbourne-headquartered operator. . Bloomberg said the latest takeover bid would have the added benefit of allowing the 54-year-old, who recently stepped out of the public eye to deal with a range of mental health issues, to cleanly exit the company he ran before retiring in March. . 2018.
Steve Johnson is chief investment officer at investment firm Forager Funds Management, which owns shares in Crown Resorts Limited, and he reportedly told the news service that the casino operator “remains a high-quality and valuable asset” destined “to be more valuable to the private equity market.” capital.” than it will ever be worth on a listing.”
Johnson reportedly said…
“Increasing the offer price is a welcome move and we support the board’s commitment to a suitable firm offer.”
Bloomberg reported that any such buyout could cause additional complications due to the fact that it must be approved by the gambling regulators of the states of Victoria, Western Australia and New South Wales. The big prize, however, is that The Blackstone Group Limited will gain control of a casino monopoly in Australia’s two largest cities, as well as a glittering $1.6 billion development along Sydney’s waterfront.