Crown Casinos receives new offer from Blackstone
The gambling giant Blackstone has already made an offer several times submitted for Crown Casinos. So far, the company has not been successful with its offers and no purchase contract has been concluded. For this reason, Blackstone has increased its offer to over 5 billion euros. We reveal if a takeover could happen this time.
Blackstone already owns shares in Crown Casino
There are a good reason why Blackstone has such a high interest in the Crown Casinos. After all,Blackstone owns 10 percent of Crown Casinos. So it stands to reason that an offer will be made to acquire the entire company. Crown seems to think otherwise and has so far not accepted any previous offers. The first bid was made in March this year and was "only" A$6.2 billion.
The second time, thepurchase amount was already 6.5 billion AUD. But even this sum was still too low for Crown Casinos. Therefore this offer was not accepted. However, there was another reason why the owner of Crown Casino-Resorts didn't accept the offer: there was a much higher offer from Star Entertainment Group, which stood at A$12 billion. Blackstone could not and still cannot keep up with this sum.
The new offer fromBlackstone is now over AUD 8 billion. This sum is approaching the offer of Star Entertainment Group, which is why the odds are increasing. But: There is a completely different reason why Star Entertainment will not be awarded the contract.
Money laundering allegations against Star Entertainment
Somehow it's ironic that Star Entertainment Group didn't get the nod for the same reason Crown Casinos is accused of money laundering. In addition,Star Entertainment is accused of promoting crime and at the same time accepting fraud. All of this is still just allegations that have not been confirmed in any way. An investigation against the group was initiated anyway.
After Crown Casinos were also accused of the same thing, both groups would have made a good match. On the other hand,Crown Casinos wants to recover from its accusations and here a buyer with the same accusations would not be right. Crown Casinos is currently in the process of building a new reputation. For this reason, Star Entertainment's enormously attractive offer was probably not accepted.
Crown can be happy about this, because due to the current situationthe value of their shares increased. The increase is at least 16 percent, and many a company would be happy about such an increase. But Crown is also particularly pleased after the shares have recently plummeted. The reason was that there was still uncertainty as to whether Crown would be allowed to retain the license for the Melbourne casino.
Can Crown Casino really recover?
Thanks to the new CEO, Crown is slowly recovering and regaining its former good reputation. At least now the casino is working well with the regulatory body and thushopes to get the license for the third casino. At this moment, the group must certainly not allow itself any missteps in order to destroy this hope again. However, such a calculation only works if no new negative incidents occur.
Crown Casino shouldn't be happy about something like that. According to their own employees, other incidents have apparently become known. According to some employees, it is more important for management to make a profit than to comply with the law. So wouldVIP guests will still be preferred even if rules are broken as a result. VIP customers would definitely have priority and be treated as they expect and wish to be treated. Laws would no longer count in this case.
Investigations against Crown continue
The investigations started against the Crown group in Australia are still ongoing. This does not indicate a possible result. So far there are no results of the investigation. In any case, it is not good if your own employees give bad reviews about the company. In the present casethe statements made by the employees weigh even worse, since the investigations are still ongoing and the allegations are confirmed by the statements made by the employees.
However, it should not be ignored that employees may make negative comments about their employer because of allegations of money laundering and collaboration with criminals. Theof course also puts a strain on the employees, whose confidence in the management is dwindling. In addition, frequent players do not seem to be treated with the necessary care. This also bothers the employees, who are concerned about the developing gambling addiction among customers. Only the near future will show to what extent all of this will have a negative impact on further developments. A takeover by Blackstone could possibly lead to a new reputation for the gaming group.