Australias Federal Court has approved Blackstone’s purchase of Crown Resorts, clearing the path for a colossal $8.9 billion transaction (equivalent to roughly $6.2 billion in American currency). With this last obstacle overcome, Crown Resorts is poised for a change in ownership.
Formal sanction was granted to the agreement upon Crown Resorts’ filing of the court’s directive with the Australian Securities and Investments Commission. This action effectively solidifies the arrangement, leading to a halt in the trading of Crown’s stock. It is important to note, however, that Crown’s subordinated debt securities will remain tradable on the ASX under the symbol ‘CWNHB’. On the subject of the ASX, Crown Resorts will be delisted from the S&P/ASX 200 Index prior to the commencement of trading on Monday, June 20th.
This judicial determination comes on the heels of endorsements from gaming regulatory bodies in both Victoria and New South Wales, which gave their assent to the transaction earlier this month. These approvals were not unconditional, however. The Victorian Gambling and Casino Control Commission (VGCCC), for example, stressed the necessity of heightened scrutiny of Crown’s casino activities to preserve its standing as a leading gambling destination within Australia.
Having satisfied all regulatory requirements, the concluding phase of the acquisition process, known as scheme implementation, is scheduled for June 24th. On that date, stockholders will receive a substantial A$13.10 in cash for each Crown share they possessed as of Friday, June 17th.
This concludes a hostile acquisition attempt that commenced in March of 2021 with an opening proposal from Blackstone. Although the initial bids were declined, Blackstone eventually prevailed with an enhanced agreement in the beginning of 2022, securing the approval of both the Crown Resorts board of directors and its investors.
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