Blackstone Ups Bid for Crown Resorts
Crown Resorts has received a revised non-binding proposal from Blackstone Inc. to acquire all of Crown's shares at a price of AU$13.10 cash per share.
The latest offer is an increase of AU$0.60 cash per share from the group's previous offer of AU$12.50, which was made in November 2021. According to reports from Bloomberg, the US private equity firm has upped its offer to AU$8.9 billion. Blackstone already owns 10% of the Australian casino operator.
Crown has said that after taking advice from financial and legal advisers, the board believes that it is in the interest of shareholders to engage in further talks with Blackstone on a non-exclusive basis.
Should Blackstone make a binding offer at a price of no less than $13.10 cash per share then, subject to the parties entering into a binding Implementation Agreement on terms and conditions acceptable to Crown, it is the Crown Board's current unanimous intention to recommend that shareholders vote in favor of the proposal in the absence of a superior proposal and subject to an Independent Expert concluding (and continuing to conclude) that the proposed transaction is in the best interests of Crown shareholders.
The new proposal is subject to the same conditions as November's proposal, including the completion of further due diligence and the unanimous support and recommendation of the Crown board. Blackstone will also need to receive final approval from regulators in Victoria, New South Wale, and Western Australia.
The statement went on to say that there is no certainty that any offer will be accepted and that "The Crown Board is focused on maximizing value for Crown shareholders and will carefully consider any proposal that is consistent with this objective."