The Crown Resorts Ltd (ASX: CWN) share price is pushing higher on Monday morning.
At the time of writing, the casino and resorts operator's shares are up 3% to $12.76.
Why is the Crown share price rising?
Investors have been bidding the Crown share price higher this morning after it accepted an $8.9 billion takeover offer from private equity firm, Blackstone.
According to the release, Crown has entered into a scheme implementation deed which will see Blackstone acquire all of the shares in Crown by way of a scheme of arrangement at a price of $13.10 cash per share.
The release notes that the offer of $13.10 cash per share represents a premium of ~32% to the closing price of Crown shares on 18 November 2021. This was the last trading day prior to Crown receiving an acquisition proposal from Blackstone.
The Crown Board is unanimously recommending that shareholders vote in favour of the Blackstone transaction. This is in the absence of a superior proposal and subject to an independent expert concluding that it is in the best interests of Crown shareholders.
"An attractive outcome for shareholders"
Crown's Chairman, Ziggy Switkowski, explained why the Board has accepted this offer.
He said: "The Board has fully considered the Blackstone Transaction and unanimously recommends the proposal, subject to customary conditions such as an independent expert concluding the transaction is in the best interests of Crown shareholders and there being no superior proposal. When considering any proposal, the Crown Board has consistently stated it is committed to maximising value for Crown shareholders."
"The Crown Board and management have made good progress in addressing a number of significant challenges and issues emerging from the COVID-19 pandemic and various regulatory processes. Nevertheless, uncertainty remains and having regard to those circumstances and the underlying value of Crown we believe the Blackstone Transaction represents an attractive outcome for shareholders. The all-cash offer provides shareholders with certainty of value."
"The cash offer under the Scheme of $13.10 cash per share values Crown's equity at approximately $8.9 billion, 11 per cent higher than the initial offer from Blackstone almost a year ago. It is now appropriate that the Blackstone Transaction is put to our shareholders for their consideration," he concluded.
What's next?
A scheme meeting is expected to be held in the second quarter of calendar year 2022. If approved, the scheme would be implemented shortly thereafter.
There has yet to be any word out of rival Star Entertainment Group Ltd (ASX: SGR), which recently was interested in merging with Crown.
