Blackstone has removed a major final hurdle in its planned $ 8.9 billion takeover of Crown Resorts, and the WA government has announced that it has given regulatory approval to the deal.
Key points:
- The government says the acquisition is subject to harsh conditions
- These conditions will be “aligned” with the recommendations of the Royal Commission
- They will include strategies against money laundering and problem gambling
The American private equity giant had been waiting for the green light in WA, following Thursday’s announcement that regulators in New South Wales and Victoria had approved it as a suitable licensee. casino.
If the acquisition is approved by the Federal Court, the sale is likely to generate a $ 3.36 billion payday for Crown majority shareholder and founder James Packer.
WA Games and Games Minister Tony Buti said Friday morning that he and the state casino gambling watchdog, the Gambling Commission (GWC), had approved the acquisition of Crown by of Blackstone, but with strict conditions.
Tony Buti says Blackstone will have to meet “a number of strict conditions.” (ABC News: Jacob Kagi)
These include requiring Blackstone institutional investors not to be involved in Crown Perth’s day-to-day operations.
The company would also be subject to improved reports of anti-money laundering and responsible gambling activities, as well as additional audit requirements.
“These conditions are in line with a number of recommendations from the recent Royal Perth Casino Commission,” he said.
“The state government has already made significant improvements to the regulatory regime and remains committed to establishing an even tougher regulatory and governance framework to ensure that whoever owns or runs the Perth casino is responsible.”
The government is ready to introduce new laws aimed at preventing money laundering and criminal activity in the casino. (ABC News: Andrew O’Connor)
Buti said the conditions, combined with forthcoming reforms, would ensure compliance with proper standards at the Perth casino.
The Victorian Gambling and Casino Control Commission (VGCCC) also imposed conditions on Blackstone, such as keeping Crown Melbourne as its flagship Australian casino.
Crown to become a private company
Crown told ASX on Friday that if the Federal Court approves the acquisition at a hearing scheduled for Wednesday, it would announce a timetable for completing the deal.
It would mean that Crown Resorts would become a private company and would no longer be required to report to the ASX.
Approval has been granted subject to strict conditions designed to eliminate betting issues. (Provided by: Crown Perth)
Buti said he had ordered Blackstone to work with “the highest standards of governance and operations,” including the application of ASX’s corporate governance principles.
The company will also have to report on all regulator investigations in Australia and abroad, seek approval for any new investors and strengthen its audit and anti-money laundering reports.
GWC President Lanie Chopping said the assessment of Blackstone’s application had been a “detailed and complex process.”
“Probability approval by the Gaming and Betting Commission has been granted subject to a number of conditions designed to ensure that the commission has the oversight and ability to monitor any changes in the management or ownership of the licensee. “, he said.
Posted 2 hours, 2 hours ago, Friday, June 10, 2022 at 2:25 AM, updated 1 hour, 1 hour ago, Friday, June 10, 2022 at 3:31 AM