Blackstone has received approval to examine Crown Resorts’ financials after raising its acquisition proposal to a substantial $6 billion. This action follows an initial unsolicited bid from Blackstone, a US-based private equity group, to the casino company.
Although Crown has stated that the latest proposal undervalues its actual worth, it is granting Blackstone access to sensitive data for a due diligence review. This presents a prime chance for Blackstone to thoroughly assess Crown’s value and possibly enhance its offer.
Blackstone’s opening proposals of $11.85 and $12.35 per share were respectfully rejected as inadequate. However, the $12.50 per share bid appears to have found the right balance.
Crown, a gem in the Australian casino sector with a particularly dazzling new Sydney resort, has been under the microscope for over a year due to regulatory probes into its majority shareholder, tycoon James Packer. Nevertheless, the attractiveness of Crown’s holdings, including its casino exclusivity in two Australian cities, hasn’t discouraged potential buyers like Australian competitor Star Entertainment Group.
This isn’t the first time Crown has been the subject of takeover speculation. The company was granted a two-year period to rectify its operations following a damning inquiry last October that exposed questionable practices, such as taking advantage of vulnerable gamblers, tax irregularities, and enabling money laundering.
The company, Crown Resorts, is facing criticism for questionable practices at their Perth gambling establishment. This has sparked public outcry, with many arguing they should be stripped of the license for their new high-end Sydney harbor casino.