Crown Towers Sydney. Source: Crown Resorts
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Crown Resorts (CWN) rejects private equity firm Blackstone’s roughly $8.46 billion takeover offer but will let the firm have a peek at its books
  • The Board of Crown says the $12.50 per share offer from the US business “does not represent compelling value” for its shareholders
  • The embattled casino operator isn’t throwing the baby out with the bathwater, CWN will allow Blackstone to present another offer
  • CWN will also offer up the opportunity to access non-public information, so the equity firm can present a revised offer
  • Shares in Crown Resorts are trading steady at $10.94 each

Crown Resorts (CWN) has rejected private equity firm Blackstone’s roughly $8.46 billion takeover offer but will let the firm have a peek at its books.

The embattled casino operator’s knockback comes despite Blackstone sweetening the deal and offering $12.50 per share.

That offer is a premium to CWN’s current share price, which hasn’t crossed the $12 mark since mid-June this year.

Explaining the rejection, the Board of Crown Resorts said the offer from the US business “does not represent compelling value” for its shareholders.

The ASX-200 lister isn’t throwing the baby out with the bathwater though, CWN will allow Blackstone to present another offer.

The casino business said it would offer Blackstone the opportunity to access non-public information, so the equity firm can present a revised offer.

Blackstone is one of several businesses, including competitor The Star Entertainment Group (SRG), which have made bids to takeover Crown.

The casino operator has faced a challenging past few years after an investigation by the NSW Gaming Authority ruled Crown was not fit to hold a casino licence.

The company’s multi-billion-dollar casino in Barangaroo, Sydney, was unable to open as a result and several other state’s launched their own inquiries into Crown.

Following today’s rejection, shares in Crown Resorts are trading steady at $10.94 per share at 11:35 am AEDT.

CWN by the numbers
More From The Market Herald
The Market Herald Video

" OZ Minerals (ASX:OZL) rejects BHP takeover offer

OZ Minerals (ASX:OZL) has rejected an $8.37 billion takeover offer from BHP, claiming the offer "significantly…
Sydney's Star Casino complex.

" Star Entertainment (ASX:SGR) CEO and MD resigns to “take responsibility”

Star Entertainment (ASX:SGR) CEO and Managing Director Matt Bekier has resigned from his roles effective immediately.
Telstra (ASX:TLS) - Outgoing CEO, Andrew Penn

" Telstra (ASX:TLS) maps next steps to finalise legal restructure

Telstra (ASX:TLS) has mapped out the remaining steps required to finalise its proposed legal restructure over…
Santos (ASX:STO) - Managing Director and CEO, Kevin Gallagher

" Santos (ASX:STO) to sell a 12.5pc interest in Barossa to JERA

Oil and gas giant Santos (ASX:STO) has signed a binding sale and purchase agreement (SPA) to…