The Australian Federal Court has cleared the path for Blackstone to acquire Crown Resorts. The transaction, valued at a substantial A$8.9 billion (US$6.2 billion), signifies the conclusion of a chapter for the troubled casino powerhouse.
Following the court’s endorsement, Crown promptly lodged the order with the Australian Securities and Investments Commission, formally solidifying the acquisition. Trading of Crown’s stock will cease on the Australian Securities Exchange after today’s market close. However, the corporation stated that trading in Crown’s subordinated debt securities would proceed as normal.
As Crown gets ready for its departure, it will be delisted from the S&P/ASX 200 Index prior to the market opening on Monday, June 20th.
This ultimate authorization from the Federal Court follows Blackstone securing the required approvals from crucial gaming regulators in Victoria and New South Wales earlier this month. Both the Victorian Gambling and Casino Control Commission (VGCCC) and the Independent Liquor & Gaming Authority (ILGA) granted their contingent approval, stressing the necessity for augmented regulatory supervision of Crown’s operations going forward.
Blackstone’s acquisition, a protracted and intricate process replete with regulatory obstacles, is finally nearing completion. The plan is slated to be executed on June 24th, with investors receiving A$13.10 in cash for each share based on their ownership as of Friday, June 17th.
Following extensive negotiations spanning several months, Blackstone has successfully finalized the acquisition of Crown Resorts. The private investment firm initially expressed interest in the Australian gaming and entertainment company in early 2021; however, their preliminary proposals were declined. Their determination ultimately proved fruitful, as an enhanced offer later that year secured the approval of Crown’s board of directors. The agreement received overwhelming support from stakeholders, concluding the protracted process.
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