The Crown (ASX: CWN) share price has jumped 12% this morning as a new investor came on board.
What is Crown?
Crown is one of Australia’s largest gaming and entertainment groups. It operates two integrated resorts in Melbourne and Perth. Crown also fully owns and operates Crown Aspinalls in London, one of the high-end licensed casinos in the West End entertainment district. It is currently developing Crown Sydney at Barangaroo.
What did Crown announce?
This morning Crown said that it has been informed that an entity owned by funds managed or advised by The Blackstone Group and its affiliates has purchased 67,675,000 shares in Crown, representing 9.99% of Crown’s shares from Melco Resorts at a share price of $8.15.
This is an interesting move considering Melco Resorts was trying to take more control of Crown. However, the deal came under a lot of scrutiny from regulators. And Melco Resorts is probably suffering from lower activity at its own locations so it may need to access the cash.
Crown locations remain shut, though Crown Sydney continues to be constructed. It will be interesting to see what Blackstone, one of the world’s biggest private equity groups, does next. Could it possibly launch a takeover attempt?
Whatever happens, right now there’s uncertainty, particularly with international travel. I think I’d rather buy the below technology shares:
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Disclosure: at the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.
