Yahoo Finance Crazy amount James Packer will make from $9 billion Crown sale
Crown Resorts has accepted a takeover offer from Blackstone for a massive $8.9 billion.
And while the shareholders are expected to be pleased with the $13.10-a-share offer, it’s James Packer - who owns 37 per cent of the company - who is set to benefit the most.
It is estimated Packer will walk away with an extra $3.2 billion from the deal, which is still subject to regulatory approval.
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Crown chief executive Steve McCann said the offer from Blackstone was “compelling” for the shareholders.
“The price appropriately reflects the value of Crown's world-class assets and global reputation for premium service and experiences,” he said.
“The agreement with Blackstone also highlights the strength of the Crown brand and confidence in our future as we emerge from some challenging times, which is welcome news for our people, customers and stakeholders.”
Crown chair Ziggy Switkowski said the board unanimously accepted the offer, which had initially started at $11.85 a share.
“When considering any proposal, the Crown board has consistently stated it is committed to maximising value for Crown shareholders,” Switkowski said.
Crown has taken a significant hit during the COVID-19 pandemic with casinos not being able to operate and a lack of international travellers to hit the high-roller tables.
“The Crown board and management have made good progress in addressing a number of significant challenges and issues emerging from the COVID-19 pandemic and various regulatory processes,” Switkowski said.
“Nevertheless, uncertainty remains and having regard to those circumstances and the underlying value of Crown, we believe the Blackstone Transaction represents an attractive outcome for shareholders.”
Packer was previously an executive chair of Crown Resorts but resigned in March 2018, after a damning report found the company was not fit to hold a gambling licence.
The Bergin report expressed serious concerns over the casino operators' links to organised crime and money laundering.
The report suggested Packer was "remote manoeuvring" and alleged he had the power to influence company directors despite not working on the board.
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