The Federal Court has approved the $ 8.9 billion acquisition of US private equity giant Blackstone from casino operator Crown Resorts.
Key points:
- The decision of the Federal Court on Wednesday was long awaited
- It means Crown will go private after taking possession
- The deal between Crown and Blackstone will close next week
The acquisition is expected to offer billionaire James Packer a payday of $ 3.36 billion in exchange for his 37% stake in the company, with which he has been involved since 1999.
The court’s decision was the last hurdle in the approval process, after Blackstone was given the green light by the state governments of Western Australia, New South Wales and Victoria.
Space to play or pause, M to mute, left and right arrows to search, up and down arrows for volume. Clock Time: 3 minutes 46 seconds 3 m 46 s Crown Inquiry … What’s next for James Packer? (Rachel Pupazzoni)
What does it mean for Crown and Packer?
The agreement will mean that Crown Resorts will become a private company and will no longer have to report to the ASX.
The deal will be finalized on June 24 when the money between Blackstone and Crown will change hands.
Mr. Packer will leave Crown Resorts after the acquisition of Blackstone.
Crown shareholders also backed the Blackstone deal after the board told investors it would be in their best interest.
The moves against Mr. Packer meant he had no choice but to sell Crown.
They came after years of scandals that included a fine on the company for illegally promoting gambling in China, where 14 employees were jailed, and several damaging investigations that found that the casino operator went allow money laundering and had links to criminal gangs.
COVID-19 blockades and border closures have just added to the problems of Crown, which was seeing its profits and stock prices fall.
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Packer’s previous attempt to leave the company in 2019 was thwarted when the aspiring buyer renounced the controversy and the details of the deal were leaked.
It was Mr Packer’s political movement, dealings and relationship with Chinese businessman Laurence Ho, in his attempt to build a casino in Sydney’s Barangaroo, that led to his demise and was the catalyst for the investigation. Bergin of New South Wales, who found Crown unfit. to have a casino license.
Why Blackstone and what happens from there?
The acquisition of Blackstone paves the way for Sydney’s $ 2.2 billion Crown casino in Barangaroo, which has been banned from betting since opening in 2020.
State regulators have said Crown will be subject to strict conditions.
Blackstone Real Estate acquired the Bellagio Hotel in Las Vegas in 2019. (Facebook: Bellagio)
The Blackstone Group is the second largest private equity fund in the world.
He 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.
Posted 12 hours ago 12 hours ago Wednesday, June 15, 2022 at 12:35 AM, updated 10 hours ago Wednesday, June 15, 2022 at 2:20 AM