Oaktree offers $3bn for Crown to buy Packer stake

Crown Resorts said a group of funds advised by Oaktree Capital Management has offered to help the company by buying back up to $3bn worth of shares held by James Packer’s Consolidated Press Holdings.

Oaktree will provide the financing via a “structured instrument” to buy all, or some of Packer’s 37 per cent stake at around $12 a share.

Speaking to the Sydney Morning Herald, one Crown shareholder said that the Oaktree bid could be attractive to Crown as it would allow Packer to offload his shares without triggering a full takeover at a time when the company’s share price has been depressed.

James Packer has been looking to exit Crown for a number of years, including a deal with Wynn Resorts which fell through in 2019 and then selling a partial stage to Melco Resorts.

Pressure has also mounted on Packer to distance himself from the company after he was named as a central figure in the Bergin inquiry, which revealed a number of lapses in governance and involvement in money laundering.

However, Oaktree’s offer price may not be enough to entice Packer to sell his stake, said the shareholder.

Source: Asia Gaming Brief