Crown Resorts, the Australian casino powerhouse, has verified a substantial proposal from the American private equity group, Blackstone. Blackstone is presenting approximately $6.2 billion to purchase the entire enterprise. This unsolicited offer appraises Crown at $11.85 per share, a generous 19% increase over their latest stock market activity.
Blackstone is no novice to this arena, already possessing around 10% of Crown. They acquired those holdings in 2020 from Melco Resorts, a major contender in the Macau casino realm. Furthermore, Blackstone has investments in numerous Las Vegas ventures, with ownership in legendary locations such as the Bellagio and MGM Grand.
Crown’s leadership is remaining composed at present, stating they must thoroughly examine the proposition before reaching any conclusions. They will be conferring with regulatory bodies and other interested parties to ascertain the full picture.
Industry speculation suggests this agreement could gain traction, considering the turbulent times Crown has recently encountered. However, the final decision lies with billionaire James Packer, who commands a significant 37% stake in the corporation. Certain experts posit that joining forces with Blackstone could be Crown’s path out of troubled waters, particularly following the critical revelations from the Bergin Inquiry in New South Wales.
While the agreement between Crown Resorts and CPH has collapsed, with CPH appointees departing Crown’s leadership, Fitch experts suggest a full CPH share divestment would be advantageous. This complete separation could ease regulatory apprehensions by cutting connections and establishing a more transparent route ahead for Crown.