Crown Resorts sells for $8.9B after allegations of ‘illegal, dishonest, unethical and exploitative’ behaviour

Feb 14, 2022
Crown Resorts is Australia's biggest casino operator. Source: Crown Resorts / @crownresorts

Australia’s largest entertainment and gaming powerhouse Crown Resorts has accepted an $8.9 billion takeover bid from American equity firm Blackstone Inc. 

The Crown’s board unanimously voted in favour of the deal, which entitles each member $13.10 cash per share.

Crown chair Ziggy Switkowski tells 9News the deal represents good value for the shareholders.

“The Board has fully considered the Blackstone Transaction and unanimously recommends the proposal, subject to customary conditions such as an independent expert concluding the transaction is in the best interests of Crown shareholders and there being no superior proposal,” Mr Switkowski said.

Crown told the share market on November 2021, when they had received an unsolicited bid from Blackstone offering to buy all of the companies shares for $12.50 cash per share. 

The acceptance of Blackstone’s offer comes as the casino faced scrutiny for its operations.

In October of 2021, the Victorian royal commission flogged Crown for illegal, dishonest, unethical and exploitative” behaviour, but allowed the casino to keep their licence. 

That same year in NSW, according to 7News, an inquiry formed by Judge Patricia Bergin found the casino was “was unfit to run a casino at its luxury Barangaroo complex in Sydney.”

The DailyMail also reports the regulator’s decision followed evidence heard at the inquiry in 2021 that Crown had allegedly been used by criminal syndicates and money laundering operations.

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