Corporate capital giant Blackstone is one step closer to taking control of Crown Resorts after NSW and Victoria gaming regulators ruled it was “appropriate” to have a casino license.
Key points:
- Blackstone is pursuing a $ 8.9 billion takeover of Crown Resorts
- The equity giant has undergone an extensive probity assessment
- Crown has been prevented from operating its Barangaroo casino
Approval means Blackstone has passed a crucial test in its bid to own and operate Sydney’s Crown Casino in Barangaroo.
NSW Independent Liquor & Gaming President Philip Crawford said Blackstone had undergone a comprehensive probity assessment.
“Probability assessment has also led to certain people being approved to become ‘close’ to Crown Sydney,” he said.
“As a potential owner of Crown Resorts, Blackstone has been required to demonstrate the highest standards of probity, as well as a commitment to deliver the full set of operational changes recommended by the Bergin Inquiry.
“This commitment is vital to ensuring that Crown Sydney is free from criminal influence and properly manages the risks of damage associated with casino activities.”
An independent investigation into Crown Resorts last year found that the company was not “fit” to have a gaming license for its Barangaroo casino after hearing allegations of money laundering and links to organized crime unions.
Research Commissioner Patricia Bergin said the company had to make radical changes to its corporate governance culture and structure if it was to be considered a suitable operator.
The decision meant Crown was banned from opening the casino on its $ 2.2 billion skyscraper in Sydney’s Barangaroo, but was allowed to operate a hotel and restaurants in the building.
James Packer would no longer be a shareholder in Crown. (AAP: Tracey Nearmy)
The Victorian Gambling and Casino Control Commission has also approved the Blackstone Group as a “suitable partner” for Melbourne’s Crown Casino.
Blackstone still requires the green light from the Western Australian gaming regulator before it can continue to take control of Crown Resorts for $ 8.9 billion.
If the acquisition is approved by the Federal Court, Crown Resorts will become a private company under the Blackstone Group and will cease to be a listed company on the ASX.
It means James Packer will no longer be a shareholder in the company he founded.
Packer is online to receive a $ 3.2 billion payday for its 37% stake in Crown when the sale takes place.
The Blackstone Group is an international private equity giant that, according to its website, owns assets worth $ 915 billion.
The company owns the MGM Grand, Mandalay Bay and Bellagio hotels and casinos in Las Vegas.
He also owns the Spanish company Cirsa, which operates 147 casinos in Spain, Italy and Latin America.
Crown Resorts has not yet obtained approval to have a gaming license for its Sydney casino in Barangaroo.
The ABC understands that the state cabinet will consider whether to grant the license when it meets later this month.
Posted 1 h ago 1 hour ago Thu, June 9, 2022 at 2:46 am, updated 11 m ago, 11 minutes ago, Thu, June 9, 2022 at 3:54 AM