Blackstone has increased its bid to acquire the Australian casino behemoth Crown Resorts. The updated proposal, disclosed in a letter issued by Crown, arrives a month following Blackstone’s initial overture.
Blackstone’s enhanced offer elevates the price to A$12.35 per share in cash, assigning a total value of approximately A$8.46 billion (US$9.16 billion) to the company. This constitutes a substantial premium over Crown’s closing share value before the first offer was announced.
The transaction is not yet finalized. It remains contingent upon regulatory clearances, notably a critical approval from gaming regulators in the states where Crown manages its casinos: Victoria, New South Wales, and Western Australia. Blackstone aims to secure these approvals by the third quarter of 2021.
Further complicating matters, Crown is presently under scrutiny in all three states for potential violations of gambling regulations, including accusations of illicit financial activities. The company’s capacity to maintain its casino licenses in these states is unclear, introducing an element of uncertainty for Blackstone.
Notwithstanding the obstacles, Blackstone appears resolute in its pursuit of Crown, a move that would grant the private equity firm a significant presence in the Australian casino sector.
A prominent Australian gaming corporation, Crown Resorts, encountered multiple inquiries regarding financial misconduct and questionable operational procedures. An American investment management company, Blackstone Group, recognized potential in the distressed organization and presented an acquisition proposal.
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