The American based investment management company Blackstone has offered to buy Australia’s leading gambling and entertainment complexes Crown Resorts for $6.2 billion (A$8.02 billion).
Crown Resorts is one of Australia’s largest entertainment groups and makes a major contribution to the Australian economy through its role in tourism, employment, training, and its corporate responsibility programs.
Crown’s core businesses and investments are in the integrated resorts sector.
The New York based Equity firm which already owns 10% of Crown resorts has offered to buy the rest for A$11.85 a share which is twenty percent higher than Friday’s close, Crown’s stock soared to A$11.71 at the open in Sydney.
John Ayoub, a manager at Wilson Asset Management said
“It’s nice to get a bid, and now it’s about price discovery,” said John Ayoub, which has Crown shares.”
“These stocks are trading at trough earnings and I wouldn’t be surprised to see further activity in the sector.”
In a statement Crown said that James packer the billionaire is the biggest shareholder
“will now commence a process to assess the proposal.
Crown’s CEO and three long-time directors resigned in the wake of the Sydney inquiry, while Executive Chairman Helen Coonan accepted its findings as “warranted”
and said steps were being taken to improve the company’s governance, compliance and culture.
If Blackstone’s takeover were to succeed, it would round out a portfolio of gambling-related assets from Las Vegas to Spain with resorts in three Australian cities.
The financial crimes agency of Australia is currently investigating Crown Assets over money- laundering allegations, and the company faces two civil lawsuits accusing it of failing to disclose risks which led to share price declines.
Crown said in a statement that its board has not yet formed a view on the proposal but it would talk to “relevant stakeholders including regulatory authorities.
