Australia’s Crown Resorts has again rejected a takeover offer from US private equity firm The Blackstone Group but has left the door ajar for a revised proposal.
In a Thursday filing, Crown said it had considered Blackstone’s recent offer, taken advice from its financial and legal advisers and considered feedback from shareholders and regulators but was again holding firm, having also rejected a previous offer in May.
“The Crown Board is of the view that the Proposal does not represent compelling value for Crown shareholders,” the company said.
“However, the Crown Board has offered Blackstone the opportunity to access non-public information to allow Blackstone to undertake initial due diligence inquiries on a non-exclusive basis so that it can formulate a revised proposal that adequately reflects the value of Crown.”
Blackstone had earlier this year offered Crown AU$11.85 per share, later increased to AU$12.35 per share before being knocked back by the Australian casino giant. Blackstone returned last month with an offer of AU$12.50 per share by way of a scheme of arrangement.
The revised offer followed the recent release of findings from Victoria’s Royal Commission into Crown Melbourne, which refrained from revoking or suspending Crown’s casino license and instead provided a two-year window under the watch of a special manager for the company to prove it is suitable.
Crown is also working with the regulator in New South Wales to reach suitability and open the casino at Crown Sydney, while the findings of a Royal Commission into Crown Perth are due to be handed down early next year.
The Blackstone Group already holds a 9.99% stake in Crown Resorts which it acquired from Melco Resorts & Entertainment in April 2020. Melco had purchased the 9.99% stake from James Packer’s Consolidated Press Holdings a year earlier but backed out of a deal to purchase a second tranche after regulators in New South Wales launched an independent inquiry, which ultimately led to a finding of unsuitability by the NSW regulator in February.
Blackstone was one of two major international investment groups to express an interest in Crown earlier this year, with rival casino operator Star Entertainment Group withdrawing a merger proposal in July.
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