A worldwide investment company, Blackstone Group, has proposed an acquisition of Crown Resorts, an Australian gambling enterprise, for $8 billion in Australian currency (equivalent to approximately $6.18 billion USD). This unrequested offer signifies a 19% increase on Crown’s stock value since the beginning of 2021. Blackstone currently possesses a 10% share in Crown, obtained from Melco Resorts in 2020. Their portfolio also includes ownership in numerous Las Vegas establishments, such as the Bellagio and MGM Grand.
Although Crown recognizes the proposition, their directors have not yet reached a conclusive stance on its worthiness. They intend to meticulously assess the bid, taking into account its valuation, conditions, and other pertinent elements. Dialogue with stakeholders, encompassing regulatory authorities, will constitute a component of this procedure.
Market specialists suggest the transaction has a high likelihood of success, considering the difficulties Crown has encountered in preceding months. Nevertheless, James Packer, who maintains a substantial 37% interest in the corporation, will ultimately hold the deciding vote. The Financial Times conveys that analysts at Fitch Ratings posit this acquisition could aid Crown in resolving some of the regulatory apprehensions highlighted in the Bergin Report.
Despite the collapse of the agreement between Crown Resorts and CPH, including the departure of CPH representatives from the Crown board, financial experts at Fitch Ratings suggest that regulatory bodies in Australia will likely view the withdrawal of CPH as a stakeholder favorably. This detachment, they argue, ultimately severs the connections between the two organizations, a move that regulators have been seeking for some time.