Finance Crown seals takeover deal with Blackstone
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Crown seals takeover deal with Blackstone

Crown
AUSTRAC has served Crown Melbourne and Crown Perth with a statement of claim. Photo: AAP
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Casinos and gaming giant Crown Resorts has sealed terms for its takeover by global private equity group Blackstone.

Under the deal, Blackstone will buy all of the listed shares in Crown for $13.10 cash each, valuing the Melbourne based group at $8.9 billion.

This compares to a closing price of $12.39 on Friday, when it was valued at $8.4 billion.

Crown Chair Ziggy Switkowski said the board unanimously recommended Blackstone’s offer, subject to certain conditions including that there no better offer emerged.

“The all-cash offer provides shareholders with certainty of value,” he said on Monday.

CEO Steve McCann said the price reflected the value of Crown’s assets and its global reputation for premium service and experiences.

“The agreement with Blackstone also highlights the strength of the Crown brand and confidence in our future as we emerge from some challenging times,” he added.

Blackstone first approached Crown in March 2021, when it offered $11.85 cash per share.

The transaction is subject to Foreign Investment Review Board and gaming regulator approval, pending the receipt by the board of an independent expert report concluding the offer is in the best interests of shareholders.

James Packer’s Consolidated Press Holdings is the biggest shareholder and has a 36.8 per cent stake.

Blackstone already has a stake of about 10 per cent.

Crown is due to release its first-half results on Thursday.