Crown Resorts Agrees to A$8.9 Billion Takeover by Blackstone
February 13 2022 - 6:43PM
Dow Jones News
By Mike Cherney
SYDNEY--Australian casino operator Crown Resorts Ltd. said
Monday it has agreed to a takeover proposal from U.S. investment
firm Blackstone Inc. that values the company's equity at 8.9
billion Australian dollars (US$6.3 billion).
Under the terms of the deal, shareholders will receive A$13.10
cash per share. The takeover is subject to various conditions and
approvals, including a shareholder vote which is expected in the
second quarter of calendar year 2022.
Blackstone has been trying to buy Crown for nearly a year,
initially offering A$11.85 per share for the company in March 2021.
Blackstone raised its offer multiple times, and Crown said the
current offer represents a 32% premium to the closing price of its
shares on Nov. 18, before Blackstone raised its offer to
A$12.50.
Crown, which counts billionaire James Packer as a major
shareholder, has been the subject of numerous regulatory
investigations recently that have questioned its business
practices. Crown Chairman Ziggy Switkowski said although the
company has made progress in addressing those issues, the
Blackstone transaction is an attractive outcome for
shareholders.
"The all-cash offer provides shareholders with certainty of
value," he said.
Write to Mike Cherney at mike.cherney@wsj.com
(END) Dow Jones Newswires
February 13, 2022 18:28 ET (23:28 GMT)
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