GGRAsia – Crown Resorts’ shareholders nod Blackstone bid

Crown Resorts’ shareholders nod Blackstone bid

May 20, 2022 Newsdesk Latest News, Top of the deck, World

Shareholders of Australian casino operator Crown Resorts Ltd voted on Friday in favour of investment firm Blackstone Inc’s proposed acquisition of all the shares in the company, a deal that values it at AUD8.9 billion (US$6.28 billion at current exchange rates).

The fact of stockholder assent is according to several Crown Resorts filings to the Australian Securities Exchange, lodged the same day.

Crown Resorts said in late March that the Australian federal government had no objection to the deal involving Blackstone unit SS Silver II Pty Ltd, and known as a scheme of arrangement.

Following the shareholders’ nod on Friday, Crown Resorts said it would apply to the Federal Court of Australia for approval of the scheme. The gaming firm also noted it would assist Blackstone as it worked towards obtaining the required gaming regulatory approvals, which in Australia are at state level.

Crown Resorts has gaming and non-gaming operations at Crown Melbourne in Victoria (pictured in a file photo), and Crown Perth, in Western Australia. For now, the company also has non-gaming business at Crown Sydney in New South Wales.

Once the federal court approves the scheme of arrangment, its decision will be lodged with the Australian Securities and Investments Commission, so that the deal can take legal effect. Crown Resorts’ shares would then be suspended from trading on the Australian bourse, the gaming firm explained.

But in an additional filing that day, Crown Resorts said it “intends to request an adjournment of the final court hearing to approve the scheme of arrangement”. It had been scheduled for this coming Tuesday (May 24).

Crown Resorts added: “As a result, S&P Dow Jones Indices will no longer remove Crown Resorts Ltd from the S&P/ASX 200 effective prior to the opening of trading on May 25, 2022. There will not be any other changes in the S&P/ASX 200 as a result of the postponed scheme timetable.”