The Australian Federal Court gave its approval today for Blackstone to acquire Crown Resorts, a transaction with a substantial value of A$8.9 billion (US$6.2 billion). With this last obstacle overcome, the purchase is expected to be completed shortly.
Following the court’s authorization, Crown Resorts submitted the formal court decree to the Australian Securities and Investments Commission, solidifying the acquisition. Consequently, trading of Crown Resorts stock will cease after today’s market close, and shareholders will receive full compensation for each share held. However, Crown’s subordinated notes (traded under ‘CWNHB’) will remain active on the ASX. Furthermore, Crown Resorts will be delisted from the S&P/ASX 200 Index prior to the market opening on Monday, June 20th.
This judicial go-ahead follows regulatory approvals Blackstone secured from both the Victorian Gambling and Casino Control Commission (VGCCC) and the New South Wales Independent Liquor & Gaming Authority (ILGA) earlier this month. Both authorities stressed the significance of bolstering casino supervision and preserving Crown’s status as a leading entertainment venue in Australia.
The arrangement is scheduled to take effect on June 24th, with shareholders as of Friday, June 17th, receiving A$13.10 in cash for each share.
Blackstone’s quest to acquire Crown Resorts had been brewing for a while, reaching its peak with a triumphant acquisition in 2021. Following a period of extended negotiations, their determination proved fruitful, as an enhanced proposition ultimately swayed the Crown directors. Investors largely echoed the board’s perspective, solidifying the agreement by that years May.
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