{"id":112404,"date":"2021-04-19T03:51:30","date_gmt":"2021-04-19T03:51:30","guid":{"rendered":"https:\/\/fin2me.com\/?p=112404"},"modified":"2021-04-19T03:51:30","modified_gmt":"2021-04-19T03:51:30","slug":"oaktree-offers-australias-crown-2-3-billion-buyback-to-remove-founder-packer","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/oaktree-offers-australias-crown-2-3-billion-buyback-to-remove-founder-packer\/","title":{"rendered":"Oaktree offers Australia's Crown $2.3 billion buyback to remove founder Packer"},"content":{"rendered":"

SYDNEY (Reuters) -Oaktree Capital Group proposed bankrolling a A$3 billion ($2.3 billion) buyback by Australian casino company Crown Resorts Ltd of its founder\u2019s stake, potentially spoiling a full buyout by Blackstone Group Inc.<\/p>

FILE PHOTO: Crown Resorts Ltd’s flagship tower nears completion at Barangaroo, Sydney, Australia, April 17, 2020. REUTERS\/Stephen Coates\/File Photo\/File Photo\/File Photo<\/figcaption>

Crown said on Monday it would consider the offer from U.S. turnaround specialist Oaktree to use a \u201cstructured instrument\u201d to buy out James Packer\u2019s 37% stake.<\/p>\n

The proposal offers an alternative path to an A$8 billion full buyout offer from U.S. private equity firm Blackstone, which would also see Packer pocket about A$3 billion.<\/p>\n

Packer has borne the brunt of criticism about the company\u2019s operations that led regulators to deem it unfit for a gambling licence for its flagship new Sydney casino and also threatens gaming licences it holds in two other cities.<\/p>\n

With regulators citing Packer\u2019s influence over Crown as partly responsible for alleged activities including money laundering, the company\u2019s largest shareholder has indicated he is willing to offload his stake.<\/p>\n

Crown has said it was considering Blackstone\u2019s March 22 proposal, but many investors have declined to endorse the approach, saying it undervalues the company. They argue Crown had a higher market capitalisation in early 2020 before the coronavirus pandemic and regulatory attention hammered its shares.<\/p>\n

The Oaktree proposal, in contrast, would allow Crown to remove Packer without agreeing to a takeover at a price below investor hopes. Packer is not on the Crown board but he alone can decide the company\u2019s response to Blackstone approach since it requires 75% shareholder approval.<\/p>\n

Crown shares were up 1% at A$12.06 in Monday morning trading, in line with the broader market, but ahead of Blackstone\u2019s proposed purchase price of A$11.85 per share.<\/p>\n

\u201cOaktree might be positioning itself to do something creative with Crown,\u201d said Nathan Bell, portfolio manager of Intelligent Investor, which has Crown shares.<\/p>\n

Blackstone had a history of buying similar companies and spinning off their property assets, and there was \u201cno reason Crown couldn\u2019t copy the strategy and do it themselves\u201d with Oaktree\u2019s help, Bell added.<\/p>\n

Oaktree and a spokeman for Packer declined to comment on Monday, while Blackstone was not immediately available for comment.<\/p>\n

($1 = 1.2962 Australian dollars)<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

SYDNEY (Reuters) -Oaktree Capital Group proposed bankrolling a A$3 billion ($2.3 billion) buyback by Australian casino company Crown Resorts Ltd of its founder\u2019s stake, potentially […]<\/p>\n","protected":false},"author":3,"featured_media":112403,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"yoast_head":"\nOaktree offers Australia's Crown $2.3 billion buyback to remove founder Packer - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/business\/oaktree-offers-australias-crown-2-3-billion-buyback-to-remove-founder-packer\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Oaktree offers Australia's Crown $2.3 billion buyback to remove founder Packer - 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