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- New York-based Blackstone Group has added further conditions to its proposed buyout of Crown Resorts (CWN) that was unveiled last month
- The changes mean that Blackstone will need to receive approval from each relevant regulatory authority in order to acquire Crown
- The proposed deal will also fall through if any of Crown’s Victorian or Western Australian licences are cancelled, suspended or surrendered, or if the company’s New South Wales licences are not granted
- Blackstone submitted its offer on March 22, under which it would purchase all of Crown’s shares for $11.85 each in a deal valued at roughly $8.02 billion
- Crown Resorts is up 0.5 per cent to $12.15 per share
New York-based Blackstone Group has added further conditions to its proposed buyout of Crown Resorts (CWN) that was unveiled last month.
The offer includes a number of conditions, including the execution of a binding Implementation Agreement and various terms under a Regulatory Approval Condition, which seeks to ensure that a Blackstone-owned Crown would be a suitable entity to operate the entertainment giant’s facilities in Perth, Sydney and Melbourne.
According to this morning’s announcement, changes to the Regulatory Approval Condition mean that Blackstone will need to receive approval from each relevant regulatory authority in order to acquire a 100 per cent interest in Crown.
The proposed deal will also fall through if any of Crown’s Victorian or Western Australian licences are cancelled, suspended or surrendered, or if the company’s New South Wales licences are not granted.
Likewise, Blackstone will drop its offer if any amendments are made to Crown’s licences that “constitute a material adverse change.”
Should these conditions be met, Blackstone is expected to receive regulatory approval to acquire all of Crown’s shares it does not already own by the third quarter of this year.
Blackstone submitted its offer on March 22, under which it would purchase all of Crown’s shares for $11.85 each in a deal valued at roughly $8.02 billion.
The private equity firm currently holds a 9.99 per cent stake in Crown, which it acquired from Macau’s Melco Resorts & Entertainment in April last year — making it the second-largest shareholder after James Packer.
“The Crown board has not yet formed a view on the merits of the proposal,” Crown said at the time.
“It will now commence a process to assess the proposal, having regard to the value and terms of the proposal and other considerations.”
Swiss-based UBS has been appointed by Crown as financial advisor, while Sydney-based law firm Allens will act as legal advisor for the proposal.
Crown Resorts is up 0.5 per cent to $12.15 per share at 11:35 am AEST.
