Australia based Crown Resorts Ltd. announced on Monday that it agreed to a $6.3 billion takeover by Blackstone Inc. after roughly a year of discussing the acquisition.
The deal has not been finalized, however, as shareholders and regulators must first approve the deal which will likely occur in the second quarter of this year.
Blackstone agreed to pay 13.10 Australian dollars per share ($9.35) after a bidding war between Blackstone and Crown’s leading rival Star Entertainment Group Ltd. which ultimately resulted in Star dropping its bid. The news of the acquisition pushed Crown shares up 2.3% on Monday
The acquisition of Crown by Blackstone is in many ways a scapegoat for the company as Crown has faced numerous challenges over the past few years. The opening of Crown's new casino in Sydney was delayed by regulators after the company was found using bank accounts to launder money as well as disregarding the wellbeing of its employees. Many of Crown’s employees were arrested for gambling related crimes and the company was found partaking in illegal and dishonest behavior. Lucky for the company, regulators were reluctant to take away the Casino’s license
Crown Chief Executive Steven McCann Stated that the Blackstone deal “highlights the strength of the Crown brand and confidence in our future as we emerge from some challenging times, which is welcome news for our people, customers and stakeholders.”
Source: Wall Street Journal
