(Reuters) – Troubled Australian casino operator Crown Resorts Ltd said on Monday it had received a conditional purchase offer from US private equity giant Blackstone, which sent its shares up 19%.
The indicative proposal comes as casinos and gambling operators around the world have seen stocks plummet as coronavirus blockages made a profit, placing them on the radar of charged investment firms.
Crown has suffered more than most after a one-year regulatory investigation issued allegations of money laundering and government failures at the company, leading to the loss of its gaming license for Sydney’s new casino. of $ 2.2 billion last month.
Since then, senior executives, including his chief executive, have resigned, paving the way for Crown to repair his reputation and regain his license with former communications minister and federal president Helen Coonan at the helm of the review.
Crown said Blackstone’s proposal was $ 11.85 per share, a 20.2% premium over the company’s last closing price and valued at $ 8.02 million ($ 6.2 billion).
Its shares jumped to US $ 11,750 after news of the proposal on Monday, the highest in a year. Shares fell close to 20% in 2020, as the investigation exposed major flaws in the company’s governance.
Blackstone currently owns a 10% stake in Crown, which it bought from Melco Resorts & Entertainment in Macau in April last year for just $ 8.15 per share, and is the second owner after billionaire founder James Packer .
The company’s board had not yet taken a position on the offer, which was subject to conditions such as due diligence, the debt financing organization and Blackstone receiving game approvals to allow it to operate the licenses. Crown, Sydney, Melbourne and Perth, the company said in a statement.
Blackstone recently acquired the Bellagio in Las Vegas for $ 2.2 billion and also owns a casino complex called “The Cosmopolitan” in Las Vegas and Spanish gaming room operator Cirsa.
(1 $ = 1.2967 Australian dollars)
Reports from Rashmi Ashok to Bengaluru; Edited by Diane Craft and Stephen Coates