James Packer could bank $3.3BN if Crown Resorts sale is approved
James Packer could receive a $3.3 billion payday when he sells out of Crown Resorts.
His departure will end a 20-year association with the gaming business.
Crown’s board recently approved an $8.9 billion takeover bid from US private equity group Blackstone – the fourth bid it has made.
Packer will also likely back the Crown board’s conclusion that the Blackstone offer is “in the best interests of Crown shareholders”.
In a statement released by Packer led Consolidated Press Holdings (CPH), the company announced it was “encouraged by today’s announcement and awaits further developments”.
“CPH will review all documents released to the market by Crown Resorts relating to a binding control transaction prior to making a decision regarding its shareholding,” the CPH statement said.
“The assets of Crown Resorts are world-class, and this is reflected in the significant interest in the company.”
It was Crown chairman Ziggy Switkowski, chief executive Steve McCann and advisers at UBS and Gresham that were able to push Blackstone to raise its offer by 60¢ a share, about $406 million, to satisfy what they feel are its shareholder interests.
Blackstone raised its bid after Switkowski took over as chair of Crown in December.
Crown investor Perpertual, which owns 9% of the gaming giant, has also backed the bid.
Bids for Crown can still be made by other interested parties, with private equity firms Apollo and Oaktree also showing interest.
Apollo made a $4 billion bid for Tabcorp’s wagering and gaming business in 2021, while Oaktree offered to finance a $3 billion buyback of CPH’s stake in Crown in June last year.
Star Entertainment has also shown interest, although like Crown it is also facing an inquiry into its behaviour and operations.
However, Blackstone is in the box seat with the offer representing the largest privatisation of a public company by Blackstone in the Asian region.
Packer has wanted out of Crown for a couple of years now, however was instrumental in the construction of the 72-storey Barangaroo hotel, restaurant and apartment complex in Sydney.
The Sydney entertainment complex is now seen as the premium venue in Sydney for hotels and restaurants.
When he sold his shares to Melco, Packer said: “Crown has been a massive part of my life for the last 20 years and that absolutely remains the case today – my continuing Crown shareholding represents my single largest investment.
“I am still vitally interested in Crown’s success as a world-class resort and gaming business. The sale allows me to continue my long-term involvement with Crown and at the same time to better diversify my investment portfolio.”
Irit Jackson, 18th January 2022
