Crown Resorts

History

2022: Blackstone bought Crown Resorts for $6.3 billion

On February 14, 2022, Australia's largest casino and hotel operator Crown Resorts announced that it had agreed to a takeover by Blackstone for $6.3 billion, after about a year of efforts by the American private equity giant to acquire the company.

Blackstone will pay 13.10 Australian dollars ($9.35) USA per share in cash for Crown, which operates a casino Melbourne in and Perth and is preparing to open a new waterfront casino in. Sydney Shareholders are expected to vote on a deal with Blackstone in the second quarter of 2022. Regulators will also have to approve the deal.

Blackstone acquired Crown Resorts for $6.3 billion

When you consider changing controls, it's not today's trading price and today's earnings, "McCann told analysts during a phone call when asked whether the company considered post-pandemic trading and intense regulatory scrutiny in its decision. "This is a much broader assessment. That's a pretty fair price.

Blackstone, which already owns about 10% of Crown's stock, will take over the management of a company under scrutiny by regulators after an official investigation found it knowingly worked with criminal organizations and then misled authorities about it.

The gambling license for Crown's flagship $2.2 billion Sydney skyscraper-casino remains suspended. Crown, its Melbourne casino, has to work with a government-appointed controller for two years.

Moving to a new ownership structure is an important first step forward in addressing many regulatory challenges, said Angus Glusky, managing director of White Funds Management, which owns Crown shares.

John Ayoub, portfolio manager at Wilson Asset Management, also supported the decision to support the deal - Blackstone's fourth attempt:

In light of what has happened over the past few years, this is a good result for all involved parties, said Ayoub.[1]

Notes