Australian gaming group Crown Resorts has agreed to a takeover deal proposed by private equity firm Blackstone that will see the US firm acquire the troubled gambling operator for AU$8.9 billion (€5.6/$6.3 billion).
Blackstone’s acquisition will see high-profile billionaire James Packer leave the group following several major scandals that led to intensified regulatory scrutiny.
Blackstone had previously made a lower offer that was immediately rejected by Crown Resorts as the company held out for a higher bid. According to Chairman Ziggy Switkowski, the new bid is 10% higher than the previous offer which was made just under a year ago and ‘represents an attractive outcome for shareholders’.
Chief Executive Steve McCann told analysts on a call today that the deal provided much-needed certainty for the company’s shareholders. He said:
“When you’re looking at a change of control, it’s not today’s trading price and today’s earnings. It’s a much broader assessment. This is a pretty fair price.”
Crown Resorts is facing questions over its alleged dealings with criminal organizations in the past. Regulators in Australia have alleged that the company became involved in illegal activities and then lied to the authorities about it when confronted.
As a result of this investigation, the company’s gambling license for its Sydney casino remains suspended over a year after it was originally scheduled to reopen. Crown’s Melbourne casino has also come under investigation and must now operate under the supervision of an independent, government-appointed manager for a period of two years.
News of the deal saw Crown shares rise by 2% to AU$12.65 on Monday.
Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.
