Crown Resorts turns down Blackstone offer
Crown Resorts’ board has concluded that the revised bid from Blackstone is not in the best interests of shareholders.
Australia.- A week after Blackstone improved its original offer for the outstanding shares in Crown Resorts, the casino operator has rejected the offer.
Blackstone Group upped its original bid from AU$11.85 cash per share to AU$12.35. However, Crown’s board has stated that the conditions of the revised proposal as currently understood “present an unacceptable level of regulatory uncertainty for Crown shareholders.”
Crown Resorts said there was significant uncertainty as to the timing and outcome of the regulatory approval processes that would be required for the sale.
The board also took into consideration the timing of the proposal and the impact of the Covid-19 pandemic on Crown’s recent financial performance.
As for a rival acquisition offer from The Star Entertainment, Crown has asked the company to provide “certain information to allow the Crown Board to better understand various preliminary matters.”
It stressed: “There is no certainty that the merger proposal will result in a transaction.”
Crown has welcomed recent statements from the New South Wales regulator, which has said that Crown Resorts is on track to open its Barangaroo casino by October.
It said Crown would continue to fully co-operate concerning regulatory processes.