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Blackstone soon new owner of Crown Casinos

After several months and after a few offers Blackstone has now succeeded in getting the management of Crown Casinos to accept the current purchase offer. Blackstone has to pay AUD 8.9 billion for this – a sum that exceeds the current market value. It was not revealed when the purchase will be completed. After all, the shareholders still have to vote.

Der Hotelturm vom Crown Casino in Melbourne.

The Crown Casinos in Australia could soon change hands and be owned by Blackstone. The last purchase offer was accepted by the Management Board.(©torcasiojohn/Pixabay)

Blackstone has owned 10 percent of Crown

Blackstone for years is an investment firm headquartered inNew York. According to its own statements, the company works on behalf of pension funds, private investors and large corporations. In addition, Blackstone is active worldwide and invests in real estate, credit and hedge funds, infrastructure and insurance. Blackstone is also proud that the company supports local businesses.

However, Blackstone has also invested in the gaming industry for years. Therefore, the company not only owns ten percent of the shares of Crown Casinosin the stock portfolio. Entry into the gaming industry began in 2019 whenBlackstone invested in MGM casinos in Las Vegas and in the Bellagio Hotel. The purchase interest in Crown Casinos has existed for a year. In order to win the purchase, Blackstone had to submit four bids. However, the group was able to beat competitors out of the race.

Blackstone received support from major shareholders

Blackstone cannot, however, solely attribute the success of the bid. According to public press reports,Major shareholders such as Perpetual offered their support in January. This major shareholder was apparently satisfied with the penultimate offer, while Crown's board of directors indicated that Blackstone had to increase its offer again. If it were correct from a financial point of view, the board of Crown would suggest that the shareholders accept the purchase offer.

Now the time has come and Blackstone has revised the last offer again and offered a price of AUD 8.9 billion . Converted Blackstone offered a share price of 13 AUD. This amount exceeds the share value at the time of the offer. The stock exchange in such a way that the share values ​​actually rose. At the close, Crown shares were valued at AUD 12.50. reacted to this news

James Packer, who was handed over the Crown Group by his father, currently owns 37 percent of Crown Casinos. He, too, has publicly stated that he is happy with Blackstone'sprice and will likely agree. Not only does his vote weigh accordingly with this stake, Packer would receive more than AUD$2 billion from the sale.

Crown Casinos continues to fight for its reputation

Crown Casinos have fallen badly in recent years repeatedly in negative headlines. This was primarily due to the accusation of money laundering. Wealthy gamblers have been lured to Australia by junket operators to wager large sums of money there. Crown did not investigate where the so-called VIP customers got their money from. However, that should have happened. Another problem was that they werepeople of Chinese nationality. They shouldn't have even been allowed to travel to Australia to play there.

The allegations were confirmed in the course of the investigation, which is why there was a quick change in management. This also affected Ken Barton, who left his position as CEO in Februarylast year. This post was filled at short notice by former Minister Helen Coonan. Under her leadership, Crown was able to regain some of its good reputation. At the very least, the new rules established as a result of the investigation have been largely complied with.

So it could soon be the case thatCrown Casinos gets back the license for the newly built casino in Barangaroo. The withdrawal of the license was one of the penalties imposed on the group based on the investigation results. The fact that Crown now expects to be able to open its casino confirms that Crown's behavior has been positive in recent times.

When could the acquisition take place?

A timing for the acquisition has been set not yet determined. This is of course also due to the fact that the shareholders will not vote on the purchase offer untilin the next quarter. Only after the vote can all further details be discussed. Furthermore, it always takes a relatively long time when a large corporation merges or is taken over. Numerous administrative procedures prolong the takeover. Experts assume that the process could drag on until the end of the year, but can still be completed this year.

Who will be appointed as CEO and will lead the business is also not yet certain. The current CEO has not been in office for long, but will most likely not continue the post due to his employment contract. According to this employment contract, theCEO McCann was promised a bonus if a sale of Crown Casinos under his management goes through. According to official reports, the bonus is more than two billion US dollars.

Crown Casinos have existed since 1994

All Crown Casinos are owned by Crown Resorts Limited, which is based in Australia . In the year1994 the first casino was founded, namely the Crown Melbourne. More casinos and hotels were added later. The casino in Melbourne is not only very big, it still attracts attention because of its architecture and can be described as a landmark on the Yarra River. It is also one of the largest casinos in the world due to its size.

James Packer became the owner of Crown Casinos as the corporation was passed on to him by his father. If Crown Casinos is now sold, a long family history will come to an end. Experts may have anticipated this development afterPacker pulled out of all business in 2016. There were also investigations against Packer in 2018, which had nothing to do with the Crown Casinos. The investigations against Crown, on the other hand, dragged on for a long time and have significantly damaged the company's reputation. This is one of the reasons why a change of ownership is considered sensible by experts. We may also see adevelopment of safe online gambling through the change of ownership.

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The post was on February 23, 2022 in the Fraustest.com magazine under the keywords,,,,, Released.
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