Australian gaming group Crown Resorts has agreed to a takeover deal proposed by private equity firm Blackstone that will see the US firm acquire the troubled gambling operator for AU$8.9 billion (€5.6/$6.3 billion).
Blackstone Gambles on Crown Resorts as Takeover Bid Finally Accepted Blackstone Gambles on Crown Resorts as Takeover Bid Finally Accepted which was made just under a year ago and ‘represents an attractive outcome for shareholders’.Chief Executive Steve McCann told analysts on a call today that the deal provided much-needed certainty for the company’s shareholders. He said:
“When you’re looking at a change of control, it’s not today’s trading price and today’s earnings. It’s a much broader assessment. This is a pretty fair price.”
Crown Resorts is facing questions over its alleged dealings with criminal organizations in the past. Regulators in Australia have alleged that the company became involved in illegal activities and then lied to the authorities about it when confronted.
As a result of this investigation, the company’s gambling license for its Sydney casino remains suspended over a year after it was originally scheduled to reopen. Crown’s Melbourne casino has also come under investigation and must now operate under the supervision of an independent, government-appointed manager for a period of two years.
News of the deal saw Crown shares rise by 2% to AU$12.65 on Monday.
