Here’s why the Crown (ASX:CWN) share price jumped 9% today

Crown shares are storming higher today. Here’s why…

| More on:
a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.

Image source: Getty Images

The Crown Resorts Ltd (ASX: CWN) share price has been the best performer on the ASX 200 on Thursday.

Earlier today, the casino and resorts operator’s shares jumped a massive 9% to $12.68.

Why is the Crown share price surging higher?

Investors have been bidding the Crown share price higher this morning after the company revealed the receipt of an improved takeover proposal from Blackstone.

Crown advised that the private equity firm sweetened its offer after considering non-public information provided by Crown during initial due diligence.

According to the release, Blackstone has tabled a non-binding $13.10 cash per share offer, up 4.8% from its previous offer of $12.50 cash per share in November.

The good news for the private equity firm is that this offer has gone down well with the Crown Board on this occasion. The previous offer did “not represent compelling value for Crown shareholders” according to the Board last time.

However, this time around the “Board’s current unanimous intention would be to recommend the proposal” if Blackstone makes a binding offer “no less than $13.10 cash per share.” This would remain subject to there being no superior proposal and the Independent Expert report concluding that it is in the best interests of shareholders.

In the meantime, though, the company has told its shareholders that they do not need to take any action in relation to the revised proposal. It also warned there is no certainty that the discussions between Crown and Blackstone will result in a change of control transaction.

What about Star?

All eyes will be on Star Entertainment Group Ltd (ASX: SGR) in the coming days and weeks. It was interested in a merger with Crown before withdrawing its offer due to the uncertainty caused by the Royal Commission into Crown Melbourne.

Star has previously suggested that a deal could unlock estimated cost synergies of between $150 million to $200 million per annum. Don’t be surprised if it returns with a new merger proposal.

Should you invest $1,000 in Crown right now?

Before you consider Crown, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Crown wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor James Mickleboro 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.

More on Share Market News

A group of market analysts sit and stand around their computers in an open-plan office environment. The central figures are deep in thought about Megaport's recent earnings release
Share Market News

ASX 200 midday update: Elders and Codan rocket, Incitec Pivot disappoints

The ASX 200 index has started the week on a mildly positive note...

Read more »

stylised silhouette of a bear on financial graph background
Share Market News

These are the 10 most shorted ASX shares

Short sellers are currently targeting these ASX shares...

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Monday

Here's what to expect on the ASX 200 on Monday...

Read more »

A group of people in suits watch as a man puts his hand up to take the opportunity.
Blue Chip Shares

2 ASX blue-chip shares this top fund manager thinks are good value

Wilson Asset Management offers its thoughts on a couple of blue-chip shares.

Read more »

Illustration of men and women pushing share price graph up
Share Market News

Why are ASX 200 shares rebounding on Friday?

China's COVID-zero policies have slowed its economic growth and impacted its trading partners.

Read more »

Boy looks quizzical standing in front of a graph.
Share Market News

Here are the 3 most traded ASX 200 shares on Friday

We take a look at the most traded ASX 200 shares by volume today.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Bank Shares

What’s moving the CBA share price higher this week?

Australia's banks are expected to reap higher profits as the RBA increases the official cash rate.

Read more »

a woman in a wheelchair sits at her desk in her home with headphones on and looking at a computer screen of figures. monitoring the CBA share price
Share Market News

ASX 200 midday update: BHP, IGO, and Woolworths charge higher

The ASX 200 is ending the week strongly...

Read more »