Blackstone takes £4.7bn bet on troubled Australian gambling group
Blackstone has taken a £4.7bn bet on troubled Australian gambling group Crown Resorts.
The resort group has faced regulatory scrutiny after official investigated revealed it had knowingly dealt with criminal organisations and then misled authorities about it.
The US private equity giant already owned 10 per cent of the company, but has now snapped up a controlling stake.
The new deal will allow billionaire owner James Packer to cash in his chips and quietly escape the scandal.
“When you’re looking at a change of control, it’s not today’s trading price and today’s earnings,” Crown boss Steve McCann told analysts on a call, responding to a question about whether the company’s decision factored in post-pandemic trading and intense regulatory scrutiny.
“It’s a much broader assessment. This is a pretty fair price.”
Packer is expected to take home £1.75bn. However, he will remain the largest shareholder with 37 per cent of the company under his belt.
It means the founder will be critical in reaching the 75 per cent shareholder approval threshold.