Crown receives unsolicited and non-binding proposal from Blackstone
Crown Resorts has received an unsolicited and non-binding proposal from a company on behalf of funds managed and advised by Blackstone Inc. and its affiliates.
The proposal involves acquiring all of the shares in Crown at a price of AU$12.50 (US$9.11) cash per share, with the offer price to be reduced by the value of any dividends or distributions declared or paid by Crown.
It follows previous acquisition proposals made by Blackstone of AU$11.85 cash per share and AU$12.35 cash per share on 22 March 2021 and 10 May 2021 respectively.
The proposal is subject to several conditions, including Blackstone conducting due diligence on Crown on an exclusive basis, as well as the former receiving final approval from its investment committees.
It also requires a unanimous Crown Board recommendation and a commitment from all company directors to vote in favour of the proposal, and the execution of a binding Implementation Agreement incorporating various terms and conditions, including regulatory approvals and casino licences.
“The Crown Board has not yet formed a view on the merits of the Proposal,” a statement from Crown read. “It will now assess the Proposal, having regard to the value and terms of the Proposal and other considerations. It will also engage with relevant stakeholders including regulatory authorities.
“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.”
The operator added that any acquisition would be conditional on Blackstone receiving final approval from regulators in Victoria, New South Wales and Western Australia. Blackstone has already engaged with these regulators in relation to this issue.
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