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- Australia’s biggest gaming operator Crown Resorts (CWN) accepts a $8.9 billion takeover from American private equity firm Blackstone
- Shareholders will now have to vote for the deal to go through, with the Crown Board unanimously recommending to vote in favour of the deal
- Under the deal, Crown shareholders will receive around $13.10 cash per share and values Crown at around $8.9 billion, 11 per cent higher than the initial offer
- A scheme meeting is expected to be held in the second quarter of calendar year 2022
- On the market today, Crown is up 2.10 per cent and trading at $12.65 per share
Crown Resorts (CWN) has accepted an $8.9 billion takeover from American private equity firm Blackstone.
Now shareholders have to vote for the deal to go through, with the Crown Board unanimously recommending to vote in favour of the deal.
Under the deal, Crown shareholders will receive around $13.10 cash per share.
The scheme implementation deed values Crown’s equity at approximately $8.9 billion, 11 per cent higher than the initial offer from Blackstone almost a year ago.
Crown’s Chairman Ziggy Switkowski said the deal is “in the best interest of Crown shareholders”.
“When considering any proposal, the Crown Board has consistently stated it is committed to maximising value for Crown shareholders. The Crown Board and management have made good progress in addressing a number of significant challenges and issues emerging from the COVID-19 pandemic and various regulatory processes,” he said.
“Nevertheless, uncertainty remains and having regard to those circumstances and the
underlying value of Crown we believe the Blackstone Transaction represents an attractive outcome for shareholders. The all-cash offer provides shareholders with certainty of value.”
A scheme meeting is expected to be held in the second quarter of the calendar year 2022 and, if approved, the scheme would be implemented shortly thereafter.
The deal is subject to various conditions, including approval from the Foreign Investment Review Board among others.
On the market today, Crown is up 2.10 per cent and is trading at $12.65 per share at 1:45 pm.
