Blackstone takes its chance with Crown Resorts

Blackstone takes its chance with Crown Resorts

Blackstone is looking to expand its international portfolio by acquiring Crown Resorts

It cannot be all crises and inquiries for the Australian Crown Resorts. Last month, the company lost its license to operate a new casino in Sydney amid links to organized crimes and money laundering. Apart from Sydney, two more inquiries can take place in two other Australian states where it can operate.

The Blackstone Group offered to buy Crown Resorts in a deal that could value the casino operator at $6.2 billion, below the company's value reported a year ago. If Blackstone's bid succeeds, it would round out a portfolio of gambling-related assets worldwide, the main one being in Las Vegas, Spain, and resorts in three Australian cities.

According to experts, lately, casinos prices got impacted by the COVID-19 pandemic and also by management issues, leading to offers such as the one from Blackstone, below the market price.

Despite the reported takeover, Crown revealed that its board had not decided yet on the proposal, it considers discussing the matter with "relevant stakeholders including regulatory authorities".

After the news hit the wire, Crown stock price surged 21%, while Blackstone lost 0.77%.

Sources: finance.yahoo.com, reuters.com

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