In Australia and the nation’s highest federal court has reportedly approved the around $6.35 billion deal that is to see American private equity management firm The Blackstone Group Incorporated purchase local casino operator Crown Resorts Limited.
According to a Tuesday report from the Australian Broadcasting Corporation, the consent from the Australian Federal Court came only a week after gaming regulators for the states of Victoria and New South Wales okayed the envisioned arrangement. This latest endorsement purportedly means that the entire exercise could now be completed by as soon as June 24 after The Blackstone Group Incorporated has purchased all of the Sydney-listed casino firm’s outstanding shareholding at an individual price of approximately $9.56.
Established in May of 2007, Crown Resorts Limited is responsible for the 1,196-room Crown Perth property in Western Australia as well as Victoria’s even larger Crown Melbourne facility. However, the company was left reeling last year when the casino license for its new Crown Sydney development in New South Wales was rescinded after a state-run inquiry determined that the operator could have been complicit in numerous instances of money laundering owing to its past use of foreign junket firms.
The broadcaster reported that the acquisition is to also see Crown Resorts Limited, which moreover holds a large stake in the United Kingdom’s prestigious Crown London Aspinalls property, de-list and become a private enterprise. Such a move will purportedly likely clear the way for the 350-room Crown Sydney venue to secure a New South Wales gaming license and begin running some 230 gaming tables within its 1,577,000 sq ft casino.
The Australian Broadcasting Corporation reported that the coming arrangement is to furthermore see Australian businessman James Packer walk away with an about $2.33 billion pay-day courtesy of his 37% shareholding in Crown Resorts Limited. The 54-year-old purportedly helped to establish the Melbourne-headquartered company and even served as its chairman until standing down in 2015 to be replaced by Rob Rankin, who later left after leading the company’s divestiture of its stake in Macau and Philippines casino operator Melco Resorts and Entertainment Limited.
The Blackstone Group Incorporated’s purchase of Crown Resorts Limited was reportedly approved by the board of the casino company in February in advance of being given the required green light by the Foreign Investment Review Board. The buyer earlier purportedly disclosed that it was well positioned to take its latest target to new heights owing to its position as the world’s second-biggest private equity fund and ownership of multiple gambling-friendly properties in Las Vegas.