Crown Resorts board endorses $9 billion takeover offer from US-based investment group

A bid by US-based global investment business Blackstone to acquire the Crown Resorts looks set to be agreed with the casino and entertainment group’s board having given provisional endorsement to the offer.

Blackstone’s $13.10-a-share cash offer, which gives Crown a value of at least $8.87 billion, follows threee previous takeover attempts by the private equity firm.

In a statement this morning, Crown advised “following consideration of the revised proposal, including obtaining advice from its financial and legal advisers, the Crown board considers that it is in the interests of Crown’s shareholders to engage further with Blackstone on a non-exclusive basis.

“Accordingly, Crown has decided to provide Blackstone with the opportunity to finalise its due diligence inquiries and negotiate the terms of an implementation agreement so that Blackstone can put forward a binding offer.”

Advising that the latest offer reflected Blackstone’s review of confidential information accessed during its initial due diligence, the statement added “should Blackstone make a binding offer at a price of no less than $13.10 cash per share then it is the Crown board’s current unanimous intention to recommend that shareholders vote in favour of the proposal in the absence of a superior proposal and subject to an independent expert concluding that the proposed transaction is in the best interests of Crown shareholders.”

Blackstone, which first bed to acquire Crown in March 2021, is hoping to exploit an expected recovery in gaming and hospitality when Australia emerges from COVID-19.

Crown, which owns casinos in Perth, Melbourne and Sydney, has endured massive scrutiny over the past two years, with NSW Independent Liquor and Gaming Authority finding last year that it was unfit to hold a licence for its new Sydney casino.

The probe by the gambling wtachdog found Crown facilitated money laundering at its casinos, worked with junket operators linked to organised crime and endangered its staff in China.

A Victorian royal commission in October also found Crown unfit to run its Melbourne casino, but gave Crown two years to address a litany of shortcomings.

A royal commission into Crown’s operations in Perth is due to report in March.

Blackstone already owns 10% of Crown, which controlled by James Packer through a 37% stake.

Image: Melbourne's Crown Casino.