The prominent casino operator, Crown Resorts, has acknowledged receiving a buyout proposition from the investment firm, Oak Capital Management. A major entity in the American asset management arena, Oak Capital has presented a significant bid, potentially exceeding $2.3 billion USD. Their objective? To acquire shares of Crown Resorts presently under the ownership of Consolidated Press Holdings (CPH).
CPH holds a pivotal role in this narrative as the largest stakeholder in Crown, with James Packer at the helm, commanding a substantial 36.8% ownership. It’s crucial to recognize that Oak Capital’s proposal is in its nascent phase, lacking binding commitments and requiring numerous approvals. Essentially, they are suggesting a repurchase of a portion, or potentially the entirety, of CPH’s shares in Crown.
In their formal declaration, Crown emphasized that any such agreement would necessitate the endorsement of their shareholders. Naturally, CPH and their associated entities would be excluded from voting in such a circumstance. The onus now rests with Crown’s board, who are currently deliberating on the adequacy of Oak’s offer and will conduct a thorough assessment. Therefore, it’s a period of anticipation as we await the outcome of this potential transaction.
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