Blackstone suspends $6bn takeover proposal for Crown Resorts
Blackstone Group has suspended the proposal it had set forth to take over Crown Resorts, which was worth $6 billion. This was caused by the company’s local regulators and their continuation of their examination of its worthiness of acquiring licences for casino. The US-based company and its affiliates have set forth AU$11.85 for each share in cash.
The proposal also depends on many different factors, such as the execution of an ‘Implementation Agreement’ which contains many terms and conditions that include the firm obtaining regulatory approval over the fact that a Crown owned by Blackstone will be suitable to keep on operating through the Sydney, Perth and Melbourne licences. Some of the other factors include sorting out debt finance and the approval of the Blackstone investment committees.
As of now, Blackstone owns 9.99% of the company headquartered in Melbourne, after it obtained the stake from Melco Resorts and Entertainment for $8.15 per share back in April of 2020. The board of Crown is now stating that it does not yet have a full perception on the value of this proposal. It will now be conducting an assessment of the takeover offer concerning its worthiness, terms and taking some other factors into account.
Moreover, it will be involved with relevant stakeholders such as regulatory authorities, and the firm has stated that its shareholders are not required or needed to take any sort of action right now, since there is absolutely no guarantee that this proposal will actually end up in a transaction.
Now, the Royal Commission will be providing a report concerning the regulatory framework by a deadline of June 30 of this year, as well as a final report containing results and some recommendations due by November 14th.