Australian casino operator Crown Resorts has sold its entire 20% stake in Japanese restaurant group Nobu for US$180 million, according to the Australian Financial Review (AFR).
The sale, which values the Nobu business at around US$900 million, come with Crown owner The Blackstone Group looking to claw back some of the AU$8.9 billion (US$6 billion) it paid to acquire Crown in 2022, although the purchaser is said to be another portfolio company owned by Blackstone’s private equity funds.
Nobu, which boasts 56 restaurants worldwide – including at Crown Melbourne and Crown Sydney – was established in 1994 by Hollywood actor Robert De Niro, film producer Meir Teper and chef Nobu Matsuhisa, while former Crown owner James Packer acquired Crown’s 20% for US$100 million in 2015.
Although that stake generated around US$20 million for Crown annually, the company is currently looking to reinvest itself in the wake of regulatory reforms that have significantly increased compliance costs while curtailing the presence of international high-rollers.
Crown only recently won back its casino licenses for Crown Melbourne and Crown Sydney, while a decision on Crown Perth is still pending.
CEO Ciarán Carruthers stated in a recent interview that the company is working to reposition itself in the Australian domestic market and widen its customer base as it battles against the dual challenges of a tightened regulatory environment and reduced discretionary spending.
Crown posted an AU$199.4 million (US$135 million) loss in FY23, narrowed from AU$945.4 million (US$640 million) a year earlier.
