Australian Crown Centers will receive a $ 6.2 billion purchase offer from Blackstone

(Reuters) – Casino operator Beleaguered Crown Resorts Ltd said Monday it has received an offer to buy from private equity firm Blackstone Group Inc which values ​​the company at A $ 8.02 billion ($ 6.19 billion).

PHOTO FILE: The Australian casino giant Crown Resorts Ltd is decorating the hotel and casino in Melbourne, Australia, June 13, 2017. REUTERS / Jason Reed / File Photo

The offer price was A $ 11.85 per share, a base price of 20.2% to the Crown closing price of A $ 9.86 on Friday.

Blackstone currently holds a 10% stake in the Crown which he bought from Macco’s Melco Resorts & Entertainment Ltd in April last year, making him the second largest custodian in the Crown after James Packer, the billion founder of the company.

The Crown said its board had not yet commented on the offer and said it would now begin its consideration, urging shareholders not to take action at this stage.

Blackstone’s claim comes at a time when the casino operator has recently seen a series of top executives come out after an investigation accused of widespread financial and regulatory issues.

The Crown said the offer was subject to a number of conditions, including due diligence, arranging debt finance and Blackstone obtaining permission from gambling regulators to allow Sydney to continue and run licenses. , Melbourne & Perth.

Three Australian states have held or claimed to hold investigations into the Crown since Australian media reports accused the company of doing business with tourists linked to organized crime.

The company’s earnings have also come under sharp pressure as COVID-19 lockouts hurt their operations, resulting in their first half-year loss in more than a decade in February.

Shares of the company have risen about 2.4% so far this year, after falling nearly 20% in 2020.

($ 1 = 1.2967 Australian dollars)

Reporting by Rashmi Ashok in Bengaluru; Edited by Peter Cooney, Daniel Wallis and Diane Craft