The Australian Federal Court gave the go-ahead today for Blackstone’s purchase of Crown Resorts, clearing the path for a massive $6.2 billion transaction (approximately A$8.9 billion in Australian dollars).
Following the court’s endorsement, Crown promptly initiated the formal acquisition procedures, submitting the court order to the Australian Securities and Investments Commission.
What implications does this have for Crown Resorts’ shares? Trading will be suspended after today’s market close. The corporation did, however, confirm that trading in Crown’s subordinated notes, which are traded on the ASX under the ticker symbol ‘CWNHB,’ will continue as normal.
Noteworthy is that Crown Resorts will be formally delisted from the S&P/ASX 200 Index prior to the start of trading on Monday, June 20th.
This ultimate clearance from the Federal Court follows Blackstone’s acquisition of the required regulatory permissions from both the Victorian Gambling and Casino Control Commission (VGCCC) and the New South Wales Independent Liquor & Gaming Authority (ILGA) earlier this month.
At the time, VGCCC Chair Fran Thorn stressed the significance of the approval’s tight restrictions, stating, “Our approval is contingent on stringent requirements to guarantee Crown Melbourne is run with integrity and the greatest standards of governance, and that it remains a valuable tourism resource for Victoria.”
With all obstacles overcome, the plan is scheduled to be executed on June 24th, with stakeholders receiving A$13.10 cash per share based on their holdings as of Friday, June 17th.
Following extensive discussions spanning several months, Blackstone successfully finalized the purchase of Crown Resorts. Initial bids presented in the spring of 2021 were declined. However, Crown’s leadership ultimately greenlit Blackstone’s revised offer, which was delivered in late 2021 and further enhanced in early 2022. This acquisition subsequently received resounding endorsement from shareholders during a vote held in May.
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