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Highlights
- NYSE-listed Blackstone Inc. has received a conditional approval from gaming regulators of Western Australia to acquire Crown Resorts.
- Crown shares kept buzzing in the green territory today, outperforming broader ASX200 index and benchmark index, Consumer Discretionary.
- To get final approvals, Crown will move to the Federal Court now.
The shares of Crown Resorts Limited (ASX:CWN) gained considerably on the ASX to close at AU$13.050 apiece today (10 June). Crown shares outperformed the broader market, ASX200, which closed in red. The benchmark index, ASX200 Consumer Discretionary (XDJ), also ended a tad lower.
All 11 sectors ended in red, along with the S&P/ASX200 Index.
Crown’s share price movement was backed by the update shared by the entertainment group, regarding its proposed acquisition by NYSE-listed investment group, Blackstone Inc. As per the ASX-announcement, the acquisition has been approved by gaming regulators of the state.
In the past 12 months, the shares of Crown rose 6.79%, and the year-to-date gain is around 8.21%. In the last 6 months, the share price has gained 14%.
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Details of the approvals received by Blackstone Inc
An entity owned by Blackstone Inc., SS Silver II Pty Ltd, proposed to acquire Crown Resorts by Scheme of arrangement in an AU$8.9 billion deal. The completion of the proposed acquisition was subject to approval from Foreign Investment Review Board (FIRB) shareholders, state regulators, gaming regulators, Federal court at the final court hearing.
Image source: © Jccain | Megapixl.com
On 29 March 2022, Crown shared that FIRB approval on the transaction has been received. In May 2022, Crown informed that it has secured shareholders’ approval. On 9 June 2022, the company shared that Blackstone has received regulatory approval from New South Wales Independent Liquor and Gaming Authority (ILGA) along with Victorian Gambling and Casino Control Commission (VGCCC).
Today, Crown advised through ASX-announcement that the Gaming and Wagering Commission of Western Australia and Western Australian Minister for Racing and Gaming has also approved the transaction by way of the Scheme.
After receiving the WA approval, now the parties will move to the Federal Court to get the final approval. As per the announcement, the court hearing is scheduled for 15 June 2022.
If the Federal Court approves the proposed transaction, an indicative timetable for Scheme implementation will be released.
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About Crown Resorts
Crown Resorts’ core business lies in the integrated resort sector. Crown owns and operates resorts in Australia and London. The company holds an interest in digital businesses as well. In addition to this, Crown holds an interest in Aspers Group and Nobu.
About Blackstone
Blackstone Inc. is an investment fund company which is involved in investing capital on behalf of individuals, pension funds and large institutions.
