The board of Crown Resorts has given interim approval to a revised offer from Blackstone to take over the company in an all-cash offer worth A$8.9bn (€5.7bn).
Blackstone has lifted its offer by A$0.60 to A$13.10 per share – up from A$12.50 in November – to buy all shares in Crown that it doesn’t already own. In May last year, Blackstone offered A$12.35 after its initial offer of A$11.85 in March was rejected.
Blackstone currently holds a 9.9% stake in Crown Resorts, which owns casinos and a golf course in its real estate portfolio.
The board said: “Crown has decided to provide Blackstone with the opportunity to finalise its due diligence inquiries and negotiate the terms of an implementation agreement so that Blackstone can put forward a binding offer.”
The board said it would recommend that shareholders accept the proposal if Blackstone put in a binding agreement and no better offer emerged.
Blackstone had made the revised offer after considering non-public information provided by Crown during initial due diligence, Crown added.
The Blackstone proposal is subject to the same conditions as its November offer, including Blackstone receiving final approval from casino regulators in each of Victoria, New South Wales and Western Australia.
Billionaire James Packer is the controlling shareholder. He founded Crown Resorts two decades ago, and based on the latest offer, if consummated, his stake could be worth A$3.3bn.
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