The Blackstone Group, had on 22 March, sent an unsolicited proposal to the Crown Resorts with the intent to acquire all shares in the company.
The original proposal had an indicative price of AU$11.85 ($9.01) cash per share and it was revised to a price of AU$12.35 ($9.58) per share later.
However, in the recent incident, the Crown Resorts has rejected the acquisition proposal by the Blackstone Group which intended to acquire all of Crown’s shares.
As per Gambling Insider, the operator after the advice of the legal team and company’s board, believes that “it undervalues Crown and is not in the best interests of Crown’s shareholders.”
The statement also said that: “the substantial reduction in Crown’s debt which is expected to occur through the balance of the calendar year as a result of receiving proceeds from the sale of Crown Sydney apartments.”
“The board is committed to maximising value for all Crown shareholders and will carefully consider any acquisition proposal that is consistent with this objective.”
The operator might have rejected Blackstone’s proposal, but it is still considering Star Entertainment’s proposal.
The Star Entertainment offers 2.68 of its own shares per Crown share with the estimation that each Star share is worth AU$5. The proposal also envisions a cash proposal of AU$12.50 per Crown share, subject to 25% cap on Crown’s total shares on issue.