Blackstone has been given access to Crown Resorts’ accounts after last month it increased its takeover offer to AU$8.5bn ($6bn). Blackstone offered the casino an unsolicited and non-binding proposal.
Crown has said it will allow the US buyout firm to obtain private information as part of non-exclusive due diligence, stating the latest bid “does not represent compelling value.”
However, it is an opportunity for Blackstone to comprise a fresh offer ”that adequately reflects the value of Crown.”
Blackstone has offered AU$12.50 per Crown share, which was accepted after two previous proposals of AU$11.85 cash per share, and AU$12.35 cash per share was said to be too low.
It follows previous acquisition proposals made by Blackstone of AU$11.85 cash per share and AU$12.35 cash per share.
Billionaire James Packer, Crown’s biggest shareholder, has been hounded by regularity investigations for over a year; however, this has not deterred suitors like rival Australian casino operator, Star Entertainment Group. Crown still has casino monopolies in two Australian cities and even a new resort in Sydney.
It’s no secret that Crown has had a fair amount of speculation surrounding its casinos.
In October it was given two years to address its wrongdoings after an enquiry found it had exploited problem gamblers, underpaid taxes and facilitated money laundering. Crown was also said to be unsuitable to run its new Sydney waterfront casino and faces enquiries not too dissimilar to its Perth operations.
