Shareholders enjoy handsome takeover bids Lex Hall | 24 May 2021Text size
Shareholders in several ASX companies have enjoyed handsome takeover bids, with this month’s bid for Crown Resorts the latest to be launched following a strong start to the year.
Asset managers say other takeover bids are likely, with private equity’s huge stores of cash and the low cost of borrowing making bids easier as companies seek growth by joining with others.
Private-equity firm Blackstone and casino operator Star Entertainment Group (ASX: SGR) have both bid for gaming group Crown Resorts (ASX: CWN). Morningstar analyst Angus Hewitt says another bid for narrow-moat Crown is likely after the company rejected Blackstone s revised bid of $12.35 cash per share. Morningstar’s fair value estimate remains unchanged at $12.14, compared to its current price around $12.90, up from around $10 before Blackstone’s first bid in March.