(Reuters) – Australian casino operator Crown Resorts Ltd said on Monday that it had received a conditional takeover bid from American private equity giant Blackstone, sending its shares 19% more.
The indicative proposal comes at a time when casinos and gaming operators around the world have seen values plummet as coronavirus blockages hurt profits, putting them on the radar of money investment firms.
Crown suffered more than most after a year-long regulatory investigation that raised allegations of money laundering and governance failures at the company, leading to the loss of its gaming license to its new A $ 2.2 billion casino in Sydney last month.
Since then, top executives, including its chief executive, have resigned, paving the way for Crown to repair its reputation and regain its license with former federal communications minister and President Helen Coonan in charge of the reform.
Crown said Blackstone’s bid was A $ 11.85 per share, a premium of 20.2% over the company’s last closing price, valuing it at A $ 8.02 billion ($ 6.2 billion).
Its shares jumped to A $ 11,750 after news of the proposal on Monday, the highest value in a year. The shares fell nearly 20% in 2020, when the survey exposed major flaws in the company’s governance.
Blackstone currently has a 10% stake in Crown, which it bought from Melco Resorts & Entertainment of Macau in April last year for just A $ 8.15 per share, and is the second largest holder after billionaire founder James Packer.
The company’s board has yet to comment on the offer, which was subject to conditions including due diligence, debt financing and Blackstone receiving gambling approvals to allow it to operate Crown licenses in Sydney, Melbourne and Perth, the company said. company in a statement.
Blackstone recently acquired Bellagio in Las Vegas for $ 4.25 billion, and also owns a casino resort called “The Cosmopolitan” in Las Vegas and Spanish gaming room operator Cirsa.
($ 1 = 1.2967 Australian dollars)
Reporting by Rashmi Ashok in Bengaluru; Editing by Diane Craft and Stephen Coates