Blackstone Succeeds In a Takeover Bid of Crown Resorts at $6.4 Billion

    Article Overview

    Blackstone Inc., the private equity giant, had finally succeeded in its bid to take over the troubled Australian Casino operator, Crown Resorts Ltd., after a year-long pursuit, when the company accepted its takeover offer of $6.4 billion ($8.9 billion). 

    The offer allows the Crown shareholder to receive the US $13.10 per share. Crown shares rose by the US $12.74 in trading on Monday morning in Sydney. As per Bloomberg news, the meeting to vote for the offer will be held in the year’s second quarter. 

    This deal ends a sad chapter in the history of Crown Resorts after it was considered unsuitable to operate its Sydney Casino and was given two years to clear the litany of wrong activities at is Flagship casino in Melbourne that included acting as a platform for evading taxes and money laundering. 

    The prize is evident that if Blackstone reforms the Crown and satisfies the regulators, it will have monopolies in two Casinos in Melbourne and Sydney and get a gleaming Sydney Waterfront resort valued at US $2.2 billion Resort. 

    According to Chris Tynan, head of real estate and senior Managing Director of Blackstone Australia, in an emailed statement, they are excited to bring global hospitality, gaming expertise, and local advantage to contribute to the recovery of Crown’s position in the post-pandemic recovery situation in Australia. 

    The agreement to sell Crown Resorts allows billionaire James Packer to make a clean exit with a 36% stake. Billionaire packer whose family name was synonymous with Crown has largely withdrawn himself from corporate life owing to mental health issues in recent years. 

    The takeover will allow the newly appointed CEO Steve McCann and Chairman Ziggy Switkowski with the new board and management to rebuild the Crown’s social acceptance away from its shareholder’s harsh glare. 

    The initial offer of US $11.85 per share was made by Blackstone in March last year, and Crown rejected another request in May as it was considered too low. The Operator Star Entertainment Group Ltd scrapped a merger deal in July last year. Oaktree Capital Management LP is to also fund the Packers stake buyout also did not materialize.   

    The deal is pending approval from the Review Board of Australia’s Foreign Investment and gaming regulatory authorities in the states where Crown casino operates. Crown is advised by UBS AG and Gresham Partners. 


    RELATED ARTICLES

    Tesla’s Cheapest Cybertruck

    Tesla’s Cheapest Cybertruck Will Cost $60,990 in 2025

    Bloomberg News reports that after two years of delay and production glitches, Tesla Inc. has...
    JPMorgan’s S&P 500

    JPMorgan’s S&P 500 2024 Outlook Grimmest on Wall Street

    Bloomberg News reports that as the strategists on Wall Street are calling for an all-time...
    Fed Will Cut Interest Rates

    Fed Will Cut Interest Rates as Soon, Predicts Bill Ackman

    Bloomberg News reports that Bill Ackman, the billionaire investor, bets that the Federal Reserve will...
    AI Startup

    AI Startup of Google Raises $24 Million for Biotech Work

    Bloomberg News reports that the European biotech startup Cradle has raised as much as $24...
    Quantum Computing Lab

    Quantum Computing Lab Shut by Alibaba in Sign of Broader Cutback

    Bloomberg News reports that Alibaba Group Holding Ltd. has shuttered its quantum computing lab for...
    Water Damage Repairs

    Don’t DIY Water Damage Repairs to Your Business

    If your workplace ever suffers from water damage, you might be tempted to start fixing...
    MBA Programme

    Dual Degree MBA Programme: A Unique Educational Opportunity

    In today's world, professional success requires more than traditional management skills. It calls for a...
    women ipl

    Women IPL Sensation Shreyanka Patil: From Fan to Champion

    In a cricketing universe usually ruled by dudes, Shreyanka Patil, the rookie wonder for Royal...
    Monetize Magnet

    Monetize Magnet Review – The Best Crypto and Forex CPA Network

    In today's world, cryptocurrency has reached new heights, expanding continuously and providing online earning opportunities...
    celsius drink

    Celsius Drink – What Is It and How Safe Is It?

    These days, you must come across your social media feeds with an advertisement for a...
    low porosity hair

    Low Porosity Hair Problem? Slay Locks with Moisture Miracle

    Have you ever experienced your hair being stubbornly resistant to moisture? That's low porosity hair...