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Board of Australia’s Crown backs US$6.33bn Blackstone takeover proposal

Board of Australia’s Crown backs US$6.33bn Blackstone takeover proposal


The Board of Directors of Crown Resorts has unanimously recommended that the company’s shareholders vote to accept the AU$8.9bn (US$6.33bn) takeover offer from global investment group, Blackstone.

The proposed deal will result in Blackstone acquire 100% of the shares in Crown for a cash price of AU$13.10 (US$9.25) per share. Blackstone has made three previous offers, most recently in November 2021, all of which had been rejected by Crown. However, it is felt that this latest proposal represents compelling shareholder value.

Commenting on this most recent offer, Crown Chairman, Ziggy Switowski, said: “The Board has fully considered the Blackstone transaction and unanimously recommends the proposal, subject to customary conditions such as an independent expert concluding the transaction is in the best interests of Crown shareholders and there being no superior proposal. When considering any proposal, the Crown Board has consistently stated it is committed to maximising value for Crown shareholders. The Crown Board and management have made good progress in addressing a number of significant challenges and issues emerging from the Covid-19 pandemic and various regulatory processes. Nevertheless, uncertainty remains and having regard to those circumstances and the underlying value of Crown we believe the Blackstone transaction represents an attractive outcome for shareholders. The all-cash offer provides shareholders with certainty of value.”