{"id":11687,"date":"2021-06-17T12:45:30","date_gmt":"2021-06-17T12:45:30","guid":{"rendered":"https:\/\/www.legitgambling.com\/news\/?p=11687"},"modified":"2021-06-17T12:46:35","modified_gmt":"2021-06-17T12:46:35","slug":"bidding-war-on-scandal-plagued-crown-resorts-is-well-underway","status":"publish","type":"post","link":"https:\/\/www.legitgambling.com\/news\/bidding-war-on-scandal-plagued-crown-resorts-is-well-underway\/","title":{"rendered":"Bidding War on Scandal-Plagued Crown Resorts Is Well Underway"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/www.legitgambling.com\/news\/wp-content\/uploads\/2016\/10\/crown-resorts.jpg\" alt=\"\" width=\"300\" class=\"alignright size-full wp-image-446\" \/>After the initial release of the inquiry report for <strong>Crown Resorts<\/strong> in February, <a href=\"https:\/\/www.legitgambling.com\/news\/bidding-war-for-australias-famous-crown-resorts-starts\/\">a bidding war for the Australian\u2019s gambling scene gem<\/a> is well underway. The allegations against the gambling operator link it with a money-laundering scheme and organised crime.<\/p>\n<p>Watchdog later stated that the operator is not fit to hold a gambling license for its Sydney-based casino that is supposed to open soon in a skyscraper overlooking the Sydney harbour.<\/p>\n<p>Many have expected <strong>James Packer<\/strong>, one of the most criticised people in the <a href=\"https:\/\/www.parliament.nsw.gov.au\/la\/papers\/Pages\/tabled-paper-details.aspx?pk=79129\">initial report<\/a>, to sell his 37% stake in Crown Resorts that he owns through his private company <strong>Consolidated Press Holdings<\/strong>.<\/p>\n<p>The US private equity firm, <strong>Oaktree Capital<\/strong>, decided to raise the stakes after its <a href=\"https:\/\/www.legitgambling.com\/news\/oaktree-capital-wants-to-buy-packers-shares-in-crown-resorts\/\">initial April offer<\/a>. The latest offer includes lending $3.1 billion to Crown Resorts to purchase back its shares owned by CPH. The new package deal includes a convertible loan and 9.99% of Crown Resorts.<\/p>\n<p>However, Oaktree\u2019s plan might not go as smoothly as <a href=\"https:\/\/www.legitgambling.com\/news\/blackstone-8-billion-offer-for-crown-resorts-favoured-by-james-packer\/\"><strong>Blackstone<\/strong><\/a>, a private equity company and <strong>Star Entertainment<\/strong>, an Australian casino operator, made offers to purchase the operator entirely. Crown Resorts have already dismissed Blackstone\u2019s offer, saying it undervalues the company. <\/p>\n<p><strong>Bloomberg Markets and Finance<\/strong><\/p>\n<div style=\"position:relative;height:0;padding-bottom:56.25%\">\n<iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/XD2pujiDLh8?rel=0&amp;showinfo=0?ecver=2\" width=\"640\" height=\"360\" frameborder=\"0\" style=\"position:absolute;width:100%;height:100%;left:0\" allowfullscreen><\/iframe>\n<\/div>\n<p>&nbsp;<\/p>\n<p>However, the operator did not respond to Star\u2019s offer, promising to make a decision soon. Star\u2019s offer differs from Blackstone\u2019s as it promises to deliver more value via cost savings. Those are estimated to be around $150 million to $200 million a year.<\/p>\n<p>Selling Crown Resorts still seems very likely, although CPH agreed with regulators to neutralise the majority of their influence over Crown Resorts. However, we first heard about the deal in April, and nothing since.<\/p>\n<p>The agreement states that CPH cannot appoint any nominees to the Crown\u2019s board until October 2024. Similarly, the agreement features a ban on talking about the company\u2019s operations privately. <\/p>\n<p>Due to these circumstances, similar investigations are well underway for Crown\u2019s casinos in Melbourne and Perth.<\/p>\n<p>None of the offers is particularly attractive at the moment. Crown is likely to wait for more suitors, especially after the regulatory cloud over the Sydney casino lifts, which could bring in significant revenue.<\/p>\n<p>For instance, Blackstone\u2019s offer compares to a company value of 10.5x earnings before interest, depreciation, taxes, and amortisation, not including 2020 and 2021. This is not much of a premium offering compared to where it was trading before the pandemic, and regulatory concerns sank the stock last year.<\/p>\n<p>On the other hand, Oaktree\u2019s proposal means the company would take on more debt, but it would clear out its largest shareholder without selling the whole company.<\/p>\n<p>Similarly, <a href=\"https:\/\/www.legitgambling.com\/news\/crown-resorts-receives-offer-from-star-entertainment-for-potential-merger\/\">Star Entertainment<\/a>\u2019s offer is largely focused on promised cost savings that might not be as easy to achieve as the company claims.<\/p>\n<p>Additionally, all offers are still much lower than the <a href=\"https:\/\/www.legitgambling.com\/news\/wynn-resorts-terminates-buyout-negotiations-with-crown-resorts\/\">short-lived Wynn Resorts bid in 2019<\/a>. However, Crown Resorts can still afford to play and wait for bids, so Oaktree\u2019s offer might not be the last one.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After the initial release of the inquiry report for Crown Resorts in February, a bidding war for the Australian\u2019s gambling scene gem is well underway. The allegations against the gambling operator link it with a money-laundering scheme and organised crime. Watchdog later stated that the operator is not fit to hold a gambling license for [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,2],"tags":[],"class_list":["post-11687","post","type-post","status-publish","format-standard","hentry","category-casino","category-legislation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Bidding War on Scandal-Plagued Crown Resorts Is Well Underway<\/title>\n<meta name=\"description\" content=\"The battle for Crown Resorts is intensifying, with more offers to purchase the Australian jewel piling up. Keep reading for more info on the topic.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legitgambling.com\/news\/bidding-war-on-scandal-plagued-crown-resorts-is-well-underway\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bidding War on Scandal-Plagued Crown Resorts Is Well Underway\" \/>\n<meta property=\"og:description\" content=\"The battle for Crown Resorts is intensifying, with more offers to purchase the Australian jewel piling up. Keep reading for more info on the topic.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.legitgambling.com\/news\/bidding-war-on-scandal-plagued-crown-resorts-is-well-underway\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-06-17T12:45:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-06-17T12:46:35+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.legitgambling.com\/news\/wp-content\/uploads\/2016\/10\/crown-resorts.jpg\" \/>\n<meta name=\"author\" content=\"Ella McDonald\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ella McDonald\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bidding-war-on-scandal-plagued-crown-resorts-is-well-underway\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bidding-war-on-scandal-plagued-crown-resorts-is-well-underway\\\/\"},\"author\":{\"name\":\"Ella McDonald\",\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/#\\\/schema\\\/person\\\/1847ac7fb6ef98e52b80c47d530441b2\"},\"headline\":\"Bidding War on Scandal-Plagued Crown Resorts Is Well Underway\",\"datePublished\":\"2021-06-17T12:45:30+00:00\",\"dateModified\":\"2021-06-17T12:46:35+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bidding-war-on-scandal-plagued-crown-resorts-is-well-underway\\\/\"},\"wordCount\":500,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bidding-war-on-scandal-plagued-crown-resorts-is-well-underway\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/wp-content\\\/uploads\\\/2016\\\/10\\\/crown-resorts.jpg\",\"articleSection\":[\"Casino\",\"Legislation\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bidding-war-on-scandal-plagued-crown-resorts-is-well-underway\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bidding-war-on-scandal-plagued-crown-resorts-is-well-underway\\\/\",\"url\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bidding-war-on-scandal-plagued-crown-resorts-is-well-underway\\\/\",\"name\":\"Bidding War on Scandal-Plagued Crown Resorts Is Well Underway\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bidding-war-on-scandal-plagued-crown-resorts-is-well-underway\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bidding-war-on-scandal-plagued-crown-resorts-is-well-underway\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/wp-content\\\/uploads\\\/2016\\\/10\\\/crown-resorts.jpg\",\"datePublished\":\"2021-06-17T12:45:30+00:00\",\"dateModified\":\"2021-06-17T12:46:35+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/#\\\/schema\\\/person\\\/1847ac7fb6ef98e52b80c47d530441b2\"},\"description\":\"The battle for Crown Resorts is intensifying, with more offers to purchase the Australian jewel piling up. 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