Crown Resorts’s board has finally backed a AUD8.9bn offer from private equity giant Blackstone Inc.
Australia.- After months of negotiations, the board of Crown Resorts Ltd has unanimously backed investment firm Blackstone Inc‘s offer to acquire all the shares of Crown Resorts in a deal that values the firm at AUD8.9bn (US$6.36bn).
Under the latest proposal, Crown Resorts stockholders would be entitled to AUD13.10 (US$9.55) in cash per share. The offer is the fourth that Blackstone has made in 12 months. It previously offered AUD11.85 per share in March last year and AUD12.35 per share in May.
This latest offer represented an increase of $0.60 cash per share compared to the previous offer price of AU$12.50 cash (US$9.11) made in November.
Crown chairman Ziggy Switkowski said Blackstone‘s all-cash offer “provides shareholders with certainty of value.”
“The Board has fully considered the Blackstone Transaction and unanimously recommends the proposal, subject to customary conditions such as an independent expert concluding the transaction is in the best interests of Crown shareholders and there being no superior proposal,” he said in a statement to shareholders.
Crown’s managing director and CEO, Steve McCann, said: “The announcement today represents a compelling offer for Crown’s shareholders to consider. The price appropriately reflects the value of Crown’s world-class assets and a global reputation for premium service and experiences.
The agreement with Blackstone also highlights the strength of the Crown brand and confidence in our future as we emerge from some challenging times, which is welcome news for our people, customers, and stakeholders.”
The deal will need to be cleared by the Foreign Investment Review Board (FIRB) and by gaming regulators in the states where Crown operates.