As previously revealed by Casino Guardian, the completion of Blackstone’s acquisition deal of Crown Resorts has been delayed because the US private equity firm had to provide evidence to the Australian watchdogs that it is suitable to run the operations of the Australian casino giant. As a result of the delay, Blackstone will have to wait three more weeks in order to receive the necessary approvals from the country’s competent regulatory bodies.
For the time being, Crown Resorts has operations in the states of New South Wales (NSW), Victoria and Western Australia. In addition, it runs an online gambling business, BetFair, in the Northern Territory. In order to finalise the deal and take over the casino company, Blackstone will have to get approval from each of the regulatory bodies in the aforementioned states.
A spokesperson for the US private equity firm noted that the company is still making efforts to guarantee the much-needed regulatory approval and it remains committed to its willingness to bring its expertise to the gambling market of Australia.
So far, Blackstone did not reveal whether it had received official regulatory approval from any of the four states where Crown Resorts currently offers its services. Back in February, Phillip Crawford, the Chair of the Independent Liquor and Gaming Authority (ILGA) in New South Wales, commented on the case, saying that the assessment of the proposed acquisition deal was almost complete. Back then, Mr Crawford noted that there was hardly anything that could stop Blackstone from taking over Crown Resorts.
Crown Resorts commented on the proposal, saying that the vote has been postponed from April 29th to May 20th. The Australian gambling giant further shared that the scheme of the arrangement is set to be implemented on June 2nd.
Crown Resorts and Blackstone Have Agreed on AU$8.9-Billion All-Cash Deal
As Casino Guardian already reported, the US private equity firm Blackstone made an AU$8.9-billion all-cash offer to take over Crown Resorts in January, with the two companies later shaking hands on the bid. Under the provisions of the deal, the shareholders of Crown Resorts are set to receive AU$13.1 for each of their shares in the Australian casino giant.
Blackstone made its first acquisition offer for Crown Resorts’ assets in March 2021, and then another one, but the first two propositions by the private equity company were rejected by the gambling operator as too low, with Crown Representatives noting that the offers undermined the giant’s market value.
Reports that Crown Resorts and its local market competitive Star Entertainment Group were planning a merger emerged in July 2021 but the deal eventually failed. Then, another company – Oaktree Capital Management LP – declared its interest in purchasing James Packer’s share in the company, which is currently about 36%.
On the other hand, the Australian gambling giant has struggled in the last couple of years, after it was hit by several investigations and allegations of links with Chinese criminal organisations and foul management practices in its casinos in the states of NSW, Victoria and Western Australia. The investigations and the findings of local regulations added to the turbulence in the company, which currently claims to be on its way to recovery, with the Blackstone takeover deal expected to help it turn a new page in its history.
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Olivia Cole
