Blackstone has raised its proposal to purchase Crown Resorts, making the agreement more appealing for the Australian gaming company. Crown disclosed that the American private equity group, which currently possesses a 10% ownership, has enhanced its bid to $13.10 per share. This constitutes an increase from the prior proposition of $12.50 per share presented in November 2021, and appraises the entire transaction at a substantial $8.9 billion.
Crown’s directors, following consultations with financial and legal experts, deem that participating in further negotiations with Blackstone is the most advantageous course of action for its investors. Nevertheless, they are awaiting a firm commitment of at least the present $13.10 per share. Should Blackstone formalize this offer and agreeable conditions are established, the board will advise shareholders to endorse the agreement – unless a more favorable proposition materializes. Naturally, this is all subject to an independent specialist’s evaluation confirming that the arrangement serves the best interests of Crown’s shareholders.
The updated proposition Crown Resorts obtained in November carries identical stipulations as the initial. The bidding private equity group, Blackstone, must finalize due diligence, acquire full backing from Crown’s directors, and attain regulatory consent in Victoria, New South Wales, and Western Australia, the locations of Crown’s casino operations.
While recognizing the proposition, Crown refrained from endorsing it. The corporation indicated there’s no certainty the deliberations will yield an agreement or a shareholder-acceptable offer. Nevertheless, Crown stressed its dedication to optimizing shareholder worth and vowed to thoroughly evaluate any proposal consistent with this aim.