Crown Resorts receives $6.2bn acquisition proposal from Blackstone

Crown Resorts receives $6.2bn acquisition proposal from Blackstone

Australian casino operator Crown Resorts has received an acquisition proposal from Blackstone that values the company at A$8.02 billion ($6.2 billion).

Crown Resorts said on Monday that it received an unsolicited, non-binding and indicative proposal from a company on behalf of funds managed and advised by The Blackstone Group Inc. and its affiliates, to acquire all of the shares in Crown by way of a scheme of arrangement at an indicative price of A$11.85 cash per share.

”The indicative price of $11.85 cash per share represents a premium of 19% to the volume-weighted average price of Crown shares since the release of its 1H FY21 results,” said the company in an ASX statement.

Blackstone currently has a shareholding of 9.99% in Crown which it acquired from Melco Resorts & Entertainment Limited for $8.15 per share in April 2020.

In May 2019, Australian billionaire businessman James Packer had sold almost half his stake in Crown Resorts for A$1.76 billion ($1.22 billion) to Melco Resorts & Entertainment Limited.

READ ALSO : Melco acquires 19.99% stake in Crown Resorts for $1.22bn

Crown Resorts said the board has not yet formed a view on the merits of the proposal. ”It will now commence a process to assess the Proposal, having regard to the value and terms of the Proposal and other considerations.”

”Crown shareholders do not need to take any action in relation to the proposal at this stage. There is no certainty that the proposal will result in a transaction,” said in the statement.

Crown has appointed UBS as financial adviser and Allens as legal adviser in relation to the proposal.