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Crown Resorts (CWN) gets sweetened $6.2bn bid from Blackstone

By Andreas Ismar

07:48, 19 November 2021

The entrance to Crown Casino Towers in Melbourne, Australia
The entrance to Crown Casino Towers in Melbourne, Australia - Photo: Shutterstock

Australia’s Crown Resorts has received a fresh takeover bid from Blackstone, valuing the casino operator around AUD8.5bn ($6.2bn), though the board has yet to give recommendation to shareholders on the offer.

Blackstone is offering to buy all of Crown’s shares at all-cash AUD12.5 apiece, 26% above the stock’s closing price on Thursday, making it the third attempt by the US private equity firm.

The offer made in May was rejected by Crown’s board, saying it was too low. Rival Star Entertainment Group had made a bid of AUD9bn before pulling out in July due to the Royal Commission’s investigation on unethical business practice ran by Crown.

Non-binding proposal

“The Crown board has not yet formed a view on the merits of the proposal. It will now assess the proposal, having regard to the value and terms of the proposal and other considerations,” it said in a statement on Friday.

The offer from Blackstone, which owns around a 10% stake in Crown, is non-binding, the board added.


2,072.25 Price
+1.760% 1D Chg, %
Long position overnight fee -0.0193%
Short position overnight fee 0.0111%
Overnight fee time 22:00 (UTC)
Spread 0.30


39,676.60 Price
+0.260% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Oil - Crude

74.50 Price
-1.560% 1D Chg, %
Long position overnight fee -0.0136%
Short position overnight fee -0.0083%
Overnight fee time 22:00 (UTC)
Spread 0.040


16,001.20 Price
+0.470% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0

Crown’s stock ended 16.5% higher at AUD11.54 on Friday, the highest in more than four months.

Bid may be too low

Sharing his views on email, Steve Johnson, chief investment officer at Forager Funds Management, comments: “Crown is a high quality strategic asset. Post the Victorian review, which was relatively positive, it is not surprising private equity is back at the table,” he said, referring to recent ruling by the Royal Commission.

“Forager Funds’ initial view is that the business is worth more than A$12.50 a share, but will take our time to review the bid and the board's response.”

Read more: Crown Resorts holds on to licence and gets time to fix issues

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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