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· Posted on
February 21, 2024

Crown Resorts' board gives shareholders the green light for Blackstone takeover

Bruised and battered...Crown is (finally) ready for Blackstone.

What's the key learning?

  • Crown received a takeover bid from US private equity firm Blackstone...and after some back and forth, Blackstone increased it
  • Now that the price is right, Crown Resorts' board is recommending shareholders accept the bid
  • The deal still needs to be approved by Australia's Foreign Investment Review Board (FIRB).

Background: Crown Resorts is Australia's biggest casino group. And it's been a rocky year in the press (Royal Commissions...money laundering...license issues...) for this crew.

What happened: The company received a takeover bid from US private equity firm Blackstone. After a lot of to-ing and fro-ing (and possibly one final arm wrestle)...Blackstone increased their offer to $13.10 per share.

What else: The price is right, team. Crown Resorts' board has finally recommended shareholders accept the bid. But hold ya 🐎🐎. The deal still needs to be approved by Australia's Foreign Investment Review Board (FIRB)

So what's the key learning?

💡Before global companies can acquire local Aussie companies, they need to be approved by the big guns (aka FIRB).

💡FIRB looks at foreign investment proposals and advises the Treasurer whether to give a 👍 or 👎. Any deal that FIRB reckons is against national interest will be blocked.

💡Although FIRB approve most deals, there have been some pretty big ones that got cut in the 11th hour. Last year, the Treasurer rejected a Chinese company's $600 million acquisition of Lion Dairy and Drinks...and it was sold to Aussie-owned Bega instead. So don't hold ya breath!

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