The Crown Resorts Ltd (ASX: CWN) share price will be one to watch on Thursday morning.
This follows the release of an update on the Blackstone takeover approach.
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Crown share price on watch after takeover bid increased
This morning Crown revealed that it has received a revised non-binding proposal from Blackstone to acquire it by way of a scheme of arrangement at a price of $13.10 cash per share. This represents an increase of $0.60 cash per share compared to the previous offer of $12.50 cash per share received in November.
The new proposal represents a 12.5% premium to the current Crown share price of $11.63.
According to the release, Blackstone made the revised proposal after considering non-public information provided by Crown during initial due diligence.
What's next?
Once again, the revised proposal is subject to a number of conditions. These include further due diligence, unanimous support and recommendation by the Crown Board, the execution of a binding implementation agreement, and Blackstone receiving final approval from regulators.
The Crown Board advised that it considers that it is in the interests of shareholders to engage further with Blackstone on a non-exclusive basis in relation to the revised proposal. It also revealed that should a binding offer be made at no less than $13.10 cash per share, the Crown Board's current unanimous intention would be to recommend the proposal. This is in the absence of a superior proposal and subject to an Independent Expert report.
For now, it advised that Crown shareholders do not need to take any action in relation to the revised proposal. The company also warned there is no certainty that the discussions between Crown and Blackstone will result in a change of control transaction.
