Crown (ASX:CWN) secures shareholders' approval on Blackstone buyout

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Crown (ASX:CWN) secures shareholders' approval on Blackstone buyout

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Crown (CWN) share price
Image source: © Pvl | Megapixl.com

Highlights

  • Crown satisfied the condition of securing shareholder approval for its proposed buyout by Blackstone.
  • Blackstone will now apply for court approval for executing the acquisition.
  • Crown ended the week in green, backed by this announcement.

The shares of Crown Resorts Limited (ASX:CWN) closed trading 0.156% higher at AU$12.84 per share on the ASX today (20 May). Approximately 2.7 million shares of Crown Resorts were traded today during the entire trading on the ASX.

The ASX-listed consumer service provider shared an update regarding its proposed buyout by Blackstone Inc, which justified the stock closing in green territory today.

The share price of Crown has fallen slightly by 0.16% on the ASX over the past 12 months. On the other hand, Crown's year-to-date share price gained over 6% on the ASX today (20 May).

Details of Crown's acquisition: 

On 19 May 2022, Crown Resorts shared an updated that the company will be removed from the S&P/ASX 200 index. Eventually, Blackstone Inc. is supposed to acquire Crown. However, the removal was subjected to shareholder and regulatory approval.

On 20 May 2022, Crown has shared that 92.05% of the Crown shareholders present and voting were in favour of the scheme resolution. While 99.91% of the votes by Crown shareholders have voted in favour of the scheme resolution.

Read more: ALL, CWN, PBH, BET: Why are these gaming stocks trading higher today?

What is next?

Crown (CWN) share priceImage source: © Utah778 | Megapixl.com

If the conditions of the scheme are satisfied, the Crown will apply to the court for approval of the scheme. The conditions also include obtaining gaming regulatory approval by Blackstone.

Additionally, Crown has scheduled a court hearing for the scheme on 24 May 2022, 11:15 AM AEST. Meanwhile, Crown will continue to support Blackstone as it works towards securing required gaming regulatory approvals.

Upon approval of the scheme by the court, a copy of the court order will be lodged with ASIC, followed by the scheme becoming legally effective. Thereby the Crown shares will be suspended from trading on the ASX.

The expected implementation of the scheme is to take place on the 7th business day after the conditions get fulfilled, followed by the date on which the scheme becomes effective. At that time, the shareholders of Crown will be paid their scheme consideration.

Read more: Crown (ASX:CWN) may pay A$100M fine; shares trade in red

About Blackstone: 

Blackstone Inc. is a renowned global investment fund which is primarily involved with the investment of capital on behalf of pension funds, large institutions, and individuals.

About Crown: 

Crown Resorts Limited is the largest ASX-listed gaming and entertainment group with a market capitalisation of AU$8.68 billion. The company is primarily involved with investments in the resort sector.

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