Shares in Crown Resorts held up yesterday despite the embattled casino group telling one would be suitor to go away.
US investment giant Blackstone was told its $12.35 a share offer wasn’t good enough – a decision that could clear the way for a marriage to Sydney based rival group, Star.
But Blackstone controls 9.9% of Crown and has stuck in there and will probably either return to the table with more money, or play a role in deciding if the Star offer succeeds
In a statement to the ASX on Monday morning, the Crown board officially rejected the improved $8.3 billion takeover offer from Blackstone.
Crown said the $12.35-per share proposal from Blackstone undervalued the company.
“The Board has unanimously concluded that the Revised Proposal undervalues Crown and is not in the best interests of Crown’s shareholders,” Crown said in a release to the ASX.
Crown also said it is still considering the merits of a $12 billion merger proposal with rival the Star Entertainment Group.
Crown shares edged up nearly 1% to $13.17 which is well ahead of the Blackstone price and a bit closer to the claimed $14 plus a share from the Star’s suggested offer of some cash and shares.
The Star offer and the appointment of Steve McCann as CEO from the end of the month still have a long way to go – two royal commissions, probity checks in NSW and other states and a decision in NSW whether Crown can open its casino at Barangaroo and what Crown plans to do to make up for the financial impact of the loss of wealth Asian gamblers.
The Victorian royal commission into Crown started its hearings yesterday with some of the sessions in private. What we did hear wasn’t encouraging (like the NSW inquiry in 2020).
The WA Commission started last week.
Crown has done a deal with NSW regulators to take cash out of the casino if it opens and gambling will be via card.
That will open the way for the NSW government to get its way for cash to be removed from all venues (clubs, pubs etc) in the state that support gambling and allow for the use of special cards.
