New bid to claim Crown

Shares surge following news of fresh offer

PRIVATE equity giant Blackstone has made a fresh takeover bid for Crown Resorts at $12.50 a share, a 26 per cent premium over the last closing price of the Casino operator.

The Crown Resorts board is considering the offer, which landed after close of business on Thursday.

It is the third tilt at the company by Blackstone, which already has a 9.99 per cent shareholding in the company.

Blackstone’s last offer six months ago was at $12.35 a share and the new bid represents a slim 1.2 per cent increase on that offer.

Crown shares surged on the news, up 16.9 per cent in midmorning trade at $11.56.

The latest bid comes three weeks after news that Crown Resorts would keep its Melbourne casino licence, despite a Victorian Royal Commission finding that its conduct was “disgraceful”. It also comes as Victorians on Friday enjoyed close to normal freedoms for the first time in months.

Crown chief executive Steven Mccann told The Australian that the board would give due consideration to the latest Blackstone proposal but in considering it, the board was committed to a decision that was in the interest of all shareholders.

“Crown does have world class assets, very hard to replicate and superior to any other portfolio of like assets in the world,” he said.

“We have a global reputation for premium service, very strong fundamentals, relatively low gearing. The offer from Blackstone evidences that we continue to be attractive to investors.”

Mccann said that since joining Crown six months ago he had seen the hard work that was already underway, work which had been accelerated as part of a comprehensive reform program.

“We have a strong recovery plan. We are well advanced on our cultural overhaul and we are on a path to industry best practice governance and compliance so I think we have come a long way,” he said.

“There are fundamental changes in the business. They have strengthened the business and they will enhance long-term value.”

The Blackstone bid is subject to a number of conditions including that it undertakes exclusive due diligence and receives a unanimous Crown board recommendation from all directors in favour of the offer.

Any acquisition would also be conditional on final confirmation of suitability from regulators in Victoria, New South Wales and Western Australia.