Gaming billionaire James Packer looks set to walk away with about $3.3 billion in cash and end a 20-year involvement with the Crown Resorts, as a result of a Crown board’s nod to Blackstone’s $8.9 billion takeover offer.
Gaming billionaire James Packer looks set to walk away with about $3.3 billion in cash and end a 20-year involvement with the Crown Resorts gaming business, as a result of Crown board’s nod to Blackstone’s $8.9 billion takeover offer.and back the Crown board’s conclusion that the Blackstone offer is “in the best interests of Crown shareholders”.A statement released by Consolidated Press Holdings said it was “encouraged by today’s announcement and awaits further developments”.
“The assets of Crown Resorts are world-class and this is reflected in the significant interest in the company.”Packer’s explicit backing for the board’s recommendation - after the release of the final documentation - would fit with the much higher governance standards implemented at the company following damaging government inquiries into its affairs.
Crown’s current chairman Ziggy Switkowski and chief executive Steve McCann have done a good job in forcing Blackstone to raise its offer by another 60¢ a share, or about $406 million.The best outcome for shareholders, including Packer, would be an auction for Crown that pushes up the takeover offer price. A bid from a financial sponsor, such as global private equity firms Apollo and Oaktree, would make Blackstone work harder.
The $13.10 a share offer is actually above the $13 a share valuation placed on the company by Packer in 2019 when he agreed to sell 19.99 per cent of the company to Lawrence Ho’s Melco Resorts and Entertainment. It was a two-step deal with 9.9 per cent up front and another 10 per cent to follow.