$6 Billion Offer Made For Crown Resorts
James Packer the majority shareholder
Australian troubled casino operator Crown Resorts has received a bid of $6.2 billion for their entire shares. US private equity firm The Blackstone Group has offered $9.15 per share which offers a 19% dividend on the current valuation of the operator.
Crown Resorts said in an announcement on Sunday that they had received “an unsolicited, non-binding and indicative proposal” for their business that is majority owned by James Packer.
The Blackstone Group already holds a 9.99% share in Crown Resorts from acquiring shares from former partner with Crown Resorts Melco Resorts and Entertainment in April 2020. Also the equity firm owns Las Vegas properties MGM Grand, the Mandalay Bay and the Bellagio.
James Packer has a 36% stake in Crown Resorts and this could be a way of escaping the troubled operator that was refused a license for their new Sydney casino resort after an inquiry found the company had major regulatory failings and now there are inquiries going on in the companies other operations in Perth and Melbourne threatening the casino operators entire future.
Shares in Crown Resorts rose early on Monday trading in Australia on the news which many analysts believe is the best outcome for the casino operator to be able to apply again for the casino license in Sydney.
