Blackstone Pins Crown Deal on Casino Licenses Not Being Cancelled
By Mike Cherney
SYDNEY--U.S. investment firm Blackstone Group, which last month
offered to acquire troubled Australian casino operator Crown
Resorts Ltd., has made the deal contingent on Crown's casino
licenses not being cancelled by gaming regulators, Crown said
Blackstone also made other changes to the so-called regulatory
approval conditions of the deal, including that Blackstone receive
approval from the gaming regulators in the various Australian
states to acquire Crown shares.
Blackstone also made the deal contingent on Crown's license for
a new casino in Sydney ultimately being granted. And if any royal
commissioners in Victoria or Western Australia, or the presiding
members of any other similar regulatory inquiry, recommends a
cancellation or suspension of Crown's casino licenses, that could
also be grounds for Blackstone to back out of the deal, Crown
Crown is facing multiple investigations from Australian
regulators related to its business practices, such as its
operations in China, where at one point it was aggressively
courting high rollers, and its relationships with junket
An inquiry set up by the gambling regulator in New South Wales
state concluded that Crown isn't suitable to operate the new casino
on Sydney's waterfront without significant changes.
Crown said it is continuing to assess the proposal, which
offered 11.85 Australian dollars ($9.04) per share for Crown and
valuing the company at roughly $6 billion. It reiterated that there
is no guarantee a transaction will occur.
Crown said Tuesday that Blackstone expects to receive approval
to acquire Crown shares from various regulators by the third
quarter of this year. It also said the Blackstone deal is not
conditional on arranging debt financing.
Write to Mike Cherney at firstname.lastname@example.org
(END) Dow Jones Newswires
April 12, 2021 20:50 ET (00:50 GMT)
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