According to a report from Inside Asian Gaming, the Melbourne-headquartered company used an official filing (pdf) to declare that the envisioned $6.2 billion tie-up currently did not ‘represent compelling value’ for its shareholders. The source explained that the casino firm is said to have arrived at this decision after receiving feedback from regulators and shareholders and following consultations with a range of legal and financial advisors.
Crown Resorts Limited is responsible for the gambling-friendly Crown Melbourne and Crown Perth facilities in Australia alongside the United Kingdom’s prestigious Crown London Aspinalls property. However, the operator has reportedly been suffering of late after it was refused a casino license for its new Crown Sydney venue owing to allegations that it may have been complicit in a slew of money laundering offences tied to its past use of foreign junket enterprises.
The Blackstone Group Incorporated is reportedly already the second largest shareholder in Crown Resorts Limited although its current 9.99% interest is dwarfed by the around 37% stake held by the Sydney-listed casino operator’s founder, controversial Australian businessman James Packer. The New York-headquartered entity had purportedly proposed an arrangement that would have seen it acquire all of the gambling giant’s issued shares at an individual price of about $9.05, which was higher than the $8.58 and $8.94 offers it floated in March and May respectively.
However, Crown Resorts Limited has reportedly not closed the door on a takeover by The Blackstone Group Incorporated altogether and pronounced that its board of directors is now offering the spurned buyer the chance ‘to access non-public information’. The operator purportedly asserted that this will allow the American shopper ‘to undertake initial due diligence inquiries on a non-exclusive basis’ for the purposes of potentially formulating ‘a revised proposal’ that would more adequately reflect its value.
Read the filing from Crown Resorts Limited…
“The provision of such information is conditional upon Crown Resorts Limited and The Blackstone Group Incorporated entering into an appropriate confidentiality agreement. Crown Resorts Limited shareholders do not need to take any action in relation to the proposal at this stage [and] there is no certainty that the discussions between Crown Resorts Limited and The Blackstone Group Incorporated will result in a revised proposal from The Blackstone Group Incorporated.”
Crown Resorts Limited has reportedly also been the subject of a proposed takeover offer from rival operator The Star Entertainment Group Limited although this deal was pulled in July owing to uncertainty regarding the perceived safety of the target’s Victoria gambling license.