- SYDNEY, AAP – Crown Resorts has received a $3 billion funding proposal that would allow it to buy out James Packer’s stake in the gaming company.The unsolicited approach was made by Oaktree Capital Management, a US-based asset management group specialising in alternative investment strategies.It’s offered to provide a funding commitment of up to around $3 billion to Crown via a structured instrument.Oaktree has proposed the “proceeds be used by Crown to buy back some or all of the Crown shares which are held by Consolidated Press Holding” on a selective basis, according to Crown.Mr Packers CPH holds 37 per cent of Crown.
“The Crown board has not yet formed a view on the merits of the Oaktree proposal at this stage,” the group said in a statement on Monday.
“It will now commence a process to assess the Oaktree proposal.”
If it did go ahead, it would be subject to Crown shareholder approval, with no votes being cast by CPH in its favour.
“There is no certainty that the Oaktree proposal will result in a transaction,” Crown said.
The bold proposal comes as the Crown board continues to consider an $8 billion takeover offer from US private equity group Blackstone.
Blackstone’s unsolicited, non-binding offer, made in March comprises $11.85 cash per share.
Crown closed on Friday at $11.92 per share, a slight premium to the offer.
Blackstone already owns about 10 per cent of the group.
Crown offered ‘proposal’ to buy out Packer
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