The Crown Resorts leadership team has endorsed a lucrative acquisition proposal from Blackstone, a private investment firm. The deal is valued at a substantial $6.33 billion! This unified decision allows Blackstone to purchase all of Crown’s stock for a generous A$13.10 per share, paid in cash. This represents a favorable arrangement for Crown investors, who are receiving a significant premium compared to Blackstone’s opening bid in March 2021.
It’s worth mentioning that this agreement wasn’t reached quickly. Blackstone had to improve their offer multiple times after Crown initially declined their proposals. They clearly recognized Crown’s potential and were willing to invest significantly to secure the deal. This final proposal was ultimately deemed satisfactory by Crown’s board, who feel it accurately represents the company’s inherent value.
The governing body of Crown has consistently placed the utmost importance on the welfare of its investors when assessing any proposition. Notwithstanding the unparalleled difficulties presented by the global health crisis and the legal landscape, Crown’s leadership and executive team have made substantial progress.
Nevertheless, ambiguities persist regarding the times ahead. Considering these elements, in addition to Crown’s intrinsic worth, we are of the opinion that Blackstone’s offer constitutes an attractive result for our stakeholders. The entirely cash-based structure of the deal furnishes shareholders with assurance and a significant yield on their capital.”
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