Crown Resorts has rejected an enhanced acquisition proposal from Blackstone Group, asserting that the suggested valuation of $12.35 per share fails to represent the company’s actual worth. Blackstone had initially presented an offer of $11.85 per share.
Following deliberations with their financial and legal advisors, the Crown directors maintain that their holdings, including the Sydney gaming establishment (notwithstanding its present restricted functionality), possess a considerably higher value. They also highlighted the anticipated reduction in corporate liabilities later this year resulting from the divestiture of Crown Sydney residential units.
Although Blackstone increased their bid, Crown’s board remains unconvinced regarding the proposed schedule or the necessary regulatory clearances. The stipulation to exclude shareholder payouts from the transaction also proved unfavorable. The board emphasized their dedication to securing the most advantageous result for all Crown investors and affirmed their willingness to carefully evaluate any proposition that aligns with that objective.
While Blackstone’s attempt to acquire Crown Resorts was unsuccessful, The Star Entertainment Group is still a contender. The board of directors at Crown is presently evaluating the advantages and disadvantages of Star’s proposition for a merger.
To aid in their assessment, Crown has requested that Star furnish them with more comprehensive particulars regarding their proposal.
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