The board of directors at Crown Resorts has endorsed a substantial acquisition bid of $6.33 billion from Blackstone, a prominent private investment firm. Should shareholders consent, the arrangement will result in Blackstone obtaining all of Crown’s remaining shares at A$13.10 per share. This signifies a considerable increase compared to Blackstone’s opening proposal of A$11.85 per share in March 2021, and it even exceeds their enhanced bid of A$12.50 from November.
The accord comes after a series of exchanges between the two entities, with Crown initially declining Blackstone’s overtures. Nevertheless, they permitted Blackstone to perform due diligence, which ultimately resulted in this modified and satisfactory proposition.
Crown’s Chairman, Ziggy Switkowski, conveyed the board’s assurance in the transaction, affirming their belief that it serves the best interests of their stakeholders, contingent upon endorsement from an autonomous specialist and the lack of a more favorable offer.
The directors at Crown have consistently prioritized increasing returns for those who hold stock in the company when considering any potential deal. The leadership and executive team at Crown have successfully navigated the considerable obstacles and difficulties presented by the global health crisis and a variety of regulatory actions.
“Nevertheless, some unknowns persist. Given these elements and Crown’s inherent worth, we feel that Blackstone’s offer presents a very attractive result for shareholders. The structure of the acquisition, being entirely cash-based, offers those holding stock a guaranteed return.”
