Blackstone Gains Access to Crown Resorts’ Finances Amidst Acquisition Bid

Blackstone has received permission to examine Crown Resorts’ financial records after raising its acquisition bid to AU$8.5 billion (US$6 billion). The US-based investment firm presented an unrequested and non-obligatory proposition to purchase the gaming company.

Crown Resorts, while indicating that the current proposal “fails to demonstrate compelling worth,” will permit the private equity group to view confidential data as a component of a non-exclusive due diligence process.
This action, nevertheless, creates an opportunity for Blackstone to present a modified offer that “appropriately reflects the value of Crown Resorts.”

Blackstone had previously submitted two bids to acquire Crown Resorts for A$11.85 and A$12.35 in cash per share, both of which were judged to underestimate the company’s value. Only after Blackstone elevated its bid to AU$12.50 per share did Crown Resorts consent to engage in discussions.

Crown Resorts’ principal shareholder, billionaire James Packer, has been entangled in regulatory probes for several years; however, this has not discouraged potential buyers like competing Australian gaming entity Star Entertainment Group. Crown Resorts maintains exclusive control over casinos in two Australian metropolises and even possesses a newly constructed resort in Sydney.

Crown Resorts’ casinos are familiar with disputes.
In October, the company was granted a two-year period to rectify its operations after an investigation revealed it had facilitated illicit financial transactions, evaded tax obligations, and exploited individuals struggling with gambling addiction.

The massive Australian gaming corporation, Crown Resorts, is under fire regarding its operating permit for a lavish new casino situated on Sydney’s sparkling harbor. It’s highly probable they could be subject to an inquiry similar to the one that rocked their Perth establishment.