Crown Resorts Agrees to A$8.9 Billion Takeover by Blackstone

   By Mike Cherney 
 

SYDNEY--Australian casino operator Crown Resorts Ltd. said Monday it has agreed to a takeover proposal from U.S. investment firm Blackstone Inc. that values the company's equity at 8.9 billion Australian dollars (US$6.3 billion).

Under the terms of the deal, shareholders will receive A$13.10 cash per share. The takeover is subject to various conditions and approvals, including a shareholder vote which is expected in the second quarter of calendar year 2022.

Blackstone has been trying to buy Crown for nearly a year, initially offering A$11.85 per share for the company in March 2021. Blackstone raised its offer multiple times, and Crown said the current offer represents a 32% premium to the closing price of its shares on Nov. 18, before Blackstone raised its offer to A$12.50.

Crown, which counts billionaire James Packer as a major shareholder, has been the subject of numerous regulatory investigations recently that have questioned its business practices. Crown Chairman Ziggy Switkowski said although the company has made progress in addressing those issues, the Blackstone transaction is an attractive outcome for shareholders.

"The all-cash offer provides shareholders with certainty of value," he said.

Write to Mike Cherney at [e-mail]

(END) Dow Jones Newswires

February 13, 2022 18:28 ET (23:28 GMT)

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