Considerable offer from Blackstone to Crown Resorts.

According to a statement, Crown Resorts received an unsolicited, non-binding, and approximate offer from Blackstone. The company seeks to purchase all of Crown’s stock through a contractual agreement at an indicative price of A$11.85 cash per share.

Crown resorts confirmed: “The Crown Board has not yet formed a view on the merits of the proposal. It will now commence a process to assess the proposal, having regard to the value and terms of the Proposal and other considerations. It will also engage with relevant stakeholders including regulatory authorities. Crown shareholders do not need to take any action in relation to the Proposal at this stage. There is no certainty that the proposal will result in a transaction.”

Blackstone also owns 9.99 percent of Crown, which it purchased for $8.15 per share from Melco Resorts & Entertainment Limited in April 2020.

Blackstone, which has a rich history of hotel and gaming acquisitions, is now doubling in on one of the pandemic’s hardest-hit markets, just as vaccinations raise expectations for a travel and leisure revival.

Crown states that: “The Crown Board has not yet formed a view on the merits of the offer. It will now commence a process to assess the proposal, having regard to the value and terms of the Proposal and other considerations. It will also engage with relevant stakeholders including regulatory authorities. Crown shareholders do not need to take any action in relation to the Proposal at this stage. There is no certainty that the proposal will result in a transaction.”

Crown’s breakthrough came in 2016 when 18 employees were sentenced to prison for encouraging gaming in China. The company was accused of collaborating with junket operators dealing with crime in 2019, according to media sources.

Crown also said it is undertaking a “complete and comprehensive corporate re-set” following the recommendations of the NSW Independent Liquor and Gaming Authority Inquiry, which found Crown unable to retain a gaming license in the state.