Blackstone Acquires Australia Casino Group from Crown Resorts.

Home ยป Blackstone Acquires Australia Casino Group from Crown Resorts.

Crown’s Board of Directors said today that it will proceed with Blackstone’s most recent offer, after nearly a year of the New York-based investment group pursuing Australia’s largest casino operator. Last month, Blackstone made its fourth proposal for Crown Resorts, valuing the casino and hospitality group at AU$8.9 billion (US$6.3 billion).

Crown Resorts will be purchased for AU$13.10 per share in cash by Blackstone. The approved proposal is a significant premium to Crown’s closing price of AU$12.38 last week. Today’s trade saw the stock rise two percent to AU$12.64.

Crown Casino Resorts owns and operates casinos in Melbourne and Perth. It plans to reopen the casino floor at its Crown Sydney integrated resort later this year, which has been blocked. In a public probe completed last year, New South Wales regulators raised various concerns about Crown’s fitness to operate a casino in the state. Crown is collaborating with state officials to address these concerns.

Crown operates Crown Aspinalls, a high-end private members club in London’s West End, outside of Australia. The resort giant holds a 50% stake in the Aspers Business, which operates four regional casinos in the United Kingdom and a 20% stake in the Nobu luxury hotel and dining group.

 

 

Packer Exodus

The agreed-upon acquisition is subject to shareholder approval and regulatory permission, but it is likely to close in the second quarter of 2022. On completion of the deal, James Packer’s association with the business he launched in 2007 will come to an end.

Packer received his riches through his father, Kerry Packer, and grandfather, Sir Frank Packer, who founded Crown Resorts. Through the family’s media business, Consolidated Press Holdings, the two late Packers acquired billions.

 

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