(CWN +20%): The much maligned casino operator was best of ground today after their 2nd largest shareholder, Blackstone Group launched an $8 billion takeover bid at $11.85 per share. The deal is a conditional one however they’re clearly a credible bidder, have very deep pockets and already have a 9.99% stake in the Casino operator. I spoke about the deal on Markets @ Midday Today – click here, outlining our view to hold the stock and see how this all plays out. Jamie Packer holds the cards here with a 37% stake, however he’s clearly a seller and this may give him an opportune exit, although at $11.85 it looks cheap relative to the Wynn Resorts bid at $14.75 per share in 2019 while Melco agreed to buy 20% at $13 while shares were at $18 in 2014.
We see value in Crown’s assets and todays bid could be the first shot across the bow i.e. if Blackstone can make the deal stake up, I m sure others can. We own in the Flagship Growth Portfolio.
MM are holding Crown (CWN) to see how the Blackstone bid progresses.
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