Oaktree joins hunt for Packer’s Crown

CROWN Resorts’ assessment of Blackstone’s $8bn takeover offer faces a twist as the casino group fields a separate proposal for funding that would allow it to buy out James Packer’s stake.

Rival private equity group Oaktree has lobbed an indicative, unsolicited offer for $3bn in funding to buy back “all or some” of the majority stake held by Mr Packer’s private company, Consolidated Press Holdings.

CPH is Crown’s largest shareholder with a stake of 37 per cent, valued at just under $3bn at Crown’s Friday closing price of $11.92.

Crown shares rose close at $12 on Monday.

The Oaktree offer, which was received by Crown over the weekend, effectively values shares in the company at $12 each — above Blackstone’s offer of $11.85 a share. Crown told the sharemarket “a funding commitment of up to $3bn” would be made to Crown via “a structured in8c to strument with the proceeds to be used by Crown to buy back some or all of the Crown shares which are held by Consolidated Press Holdings Pty Limited on a selective basis”.

Crown’s board has not yet formed a view on the Oaktree proposal and will now begin a review process, the company said, but any selective buyback of Crown shares held by CPH would be subject to shareholder approval.

Meanwhile, consideration of the Oaktree proposal is likely to blow out the timeline for Crown’s consideration of the Blackstone offer.

CPH declined to comment on the latest proposal.

But it is viewed as likely that CPH is not involved in the Oaktree proposal, and is open to assessing any offers made for the transfer of Crown shares deemed suitable by the Crown board.

CPH earlier this month said it was “open to considering and will independently assess, any suitable transaction for Crown shares”, as the private company retained Moelis Australia as its adviser to the Blackstone deal.

Anton Tagliaferro, investment director of Crown shareholder Investors Mutual Limited, said the Oaktree offer gave the Crown board the “flexibility” to sever ties with Mr Packer ( pictured) without accepting Blackstone’s offer, after the NSW Bergin inquiry cited his negative cultural influence on the company as one of the reasons the company was unsuitable to operate its Sydney casino.

“Ultimately the only (takeover) offer on the table is from Blackstone and in our opinion, it significantly undervalues the company,” Mr Tagliaferro said.

“The future of the company really depends on what price Mr Packer will accept for his stake.

“This gives flexibility.”

Crown Resorts is facing two royal commissions into its suitability to operate its casinos in Victoria and WA. the company