On April 18, Crown Resorts announced that U.S. global asset management firm Oaktree Capital Management had offered up to AU$3 billion (US$2.3 billion) to buy James Packer’s stake in Australian casino operator Crown Resorts.
According to a filing to the Australia Stock Exchange, proceeds from the proposal could be used by Crown to buy back some or all of shares held by Packer’s Consolidated Press Holdings Pty Limited (CPH). CPH is currently Crown’s single largest shareholder with a 36.8 percent stake.
According to MSN, Crown said the “unsolicited, preliminary, non-binding and indicative proposal” came from a company acting on behalf of Oaktree, which specializes in alternative investment strategies.
“The Crown board has not yet formed a view on the merits of the Oaktree proposal,” Crown said in a statement. “It will now commence a process to assess the Oaktree proposal.” Crown is also fielding an offer from the U.S. hedge fund Blackstone Group, which valued the casino giant at more than AUD8.02 billion (US$6.2 billion).
Crown has been under fire in Australia for non-compliance and money laundering at its casinos in Melbourne and Perth. In February, it was found unsuitable to operate a new $1.6 billion Sydney casino at Barangaroo in New South Wales. Following an exodus of board members and former CEO Ken Barton, Crown is working to restore its reputation in the jurisdictions, agreeing to maintain a distance from CPH.
Packer had been accused of influencing the company despite holding no official role and enabling business with junket operators and organized crime.
