The Crown Resorts Ltd (ASX: CWN) share price is in the green after Blackstone’s proposed takeover of the casino operator was given a major tick of approval.
Today, the casino operator announced the Australian government’s Foreign Investment Review Board (FIRB) has given the $8.9 billion transaction the thumbs up. Although, the takeover isn’t a sure thing just yet.
At the time of writing, the Crown share price is $12.74, 1.11% higher than its previous close.
Let’s take a closer look at the news moving the casino operator’s stock lately.
Crown share price higher on FIRB tick of approval
The Crown share price is gaining on Tuesday after the FIRB gave its approval of Blackstone’s takeover proposal.
The private equity firm’s offer is still contingent on conditions including approvals from gaming regulators and Crown’s shareholders.
Blackstone’s latest takeover proposition – the first to be approved by Crown’s board – saw the casino operator offered $13.10 cash per share.
That’s a 10.5% increase on the firm’s first offer of $11.85 per share, posed in March 2021.
The successful bid represents “an attractive outcome for shareholders”, according to Crown chair Ziggy Switkowski.
Switkowski said that, despite the company making “good progress” on challenges born from the COVID-19 pandemic and various regulatory issues, ongoing uncertainty made the takeover offer appealing.
Both Crown and Blackstone expect the takeover to go to a shareholder vote in the current quarter.
The so-far-successful bid follows many posed to Crown in 2021.
Blackstone put forward three unsuccessful bids, respectively worth $11.85 per share, $12.35 per share, and $12.50 per share, last year.
Fellow ASX-listed casino operator Star Entertainment Group Ltd (ASX: SGR) also posed a merger offer for Crown in May 2021.
Additionally, Oaktree Capital Management put forward a funding commitment worth approximately $3 billion last April.
Right now, the Crown share price is 6.5% higher than it was at the start of 2022. It has also gained 8% since this time last year.
The post Crown (ASX:CWN) share price gains as $8.9b takeover gets a green light appeared first on The Motley Fool Australia.
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More reading
- Why is the Crown (ASX:CWN) share price winning today?
- Why my 2 biggest ASX shares are about to disappear: fund manager
- Here’s why all eyes will be on the size of Crown’s (ASX:CWN) potential AUSTRAC fine
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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