A revised acquisition bid has been presented to Crown Resorts by Oaktree Capital.
Oaktree Capital Management has reached out to Crown Resorts with an updated proposition for their acquisition attempt.
Their statement reveals that Oaktree Capital’s amended proposition comprises a dual-pronged financing strategy valued at AU$3.1 billion (US$2.39 billion), encompassing a AU$2 billion confidential term loan (loan component) and a AU$1.1 billion mechanism convertible into fresh Crown Resorts stock (convertible component).
“The suggested financing strategy has a seven-year duration,” the statement indicated. “The funding solution’s interest rate is 6% annually for the initial two years, escalating to 6.5% per annum from year three until the financing solution’s maturity.”
The quantity of new Crown shares Oaktree Capital would obtain upon conversion will be restricted to roughly 10% of Crown’s overall shares. The Crown board has not yet established a stance on Oaktree Capital’s modified proposition.
Oaktree Capital originally submitted an unrequested, non-obligatory, and indicative proposal to acquire a portion or all of the shares in Crown Resorts on April 19, 2021, for AU$12.00 in cash per share.
Despite being under scrutiny by an ongoing Royal Commission inquiry into its internal operations, Crown Resorts has been fielding multiple acquisition offers.
On May 10, Star Entertainment Group declared that it had tendered a merger proposition to Crown Resorts, based on an exchange of 2.68 Star Entertainment shares for each Crown share.
On the 22nd of March, Blackstone launched a bid for Crown Resorts, proposing an acquisition at a price of $11.85 per share in Australian currency. The transaction framework resembled a “scheme of arrangement,” essentially requiring unanimous consent from all stakeholders on the stipulated conditions. Nevertheless, Crown opted to decline the proposition.
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