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James Packer finds an exit strategy in $8 billion Crown takeover offer

Business

James Packer’s Crown Resorts has received an $8 billion takeover offer from Blackstone,  a US-based investment manager.

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Crown said the offer was unsolicited and was at an indicative price of $11.85 a share, a 19 per cent premium to the average price since the company released its first-half results.

Shares in the company jumped 18 per cent this morning to $11.67 after the offer was revealed.

The offer follows months of controversy for the company after an inquiry exposed major issues for the company that led to a purge of its board.

A royal commission has also been called by the Victorian Government.

The offer needs to jump a series of regulatory hurdles and Crown said it had not formed a view on the offer.

Blackstone currently holds 9.99 per cent of Crown which it bought from Melco Resorts for $8.15 a share in April 2020.

The offer will also largely depend on Packer, who holds 37 per cent of Crown shares.

Crown said it start the process of assessing the offer and said shareholders did not need to take any action because there was no certainty that the offer would proceed.

Among the hurdles for Blackstone were receiving conformation that it passed the “suitable person” test to own and operate casinos in Sydney, Melbourne and Perth.

 

 

 

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