Investors in Crown Resorts have overwhelmingly endorsed a buyout by Blackstone, essentially securing the agreement for the gaming behemoth.
This protracted process commenced in March 2021 when Blackstone affiliate SS Silver II Pty initiated an $8.1 billion AUD (approximately $5.7 billion USD) proposal to acquire Crown. At the time, despite being embroiled in regulatory challenges, Crown was still perceived as a prized holding by the private equity group.
Blackstone enhanced their bid on two occasions, in May and November of 2021, following several rejections from Crown’s directors. Ultimately, in February 2022, Crown’s board embraced Blackstone’s improved offer of $8.9 billion AUD ($13.10 per share) in cash.
Crown Chairman Ziggy Switkowski indicated then that the board unanimously supported the arrangement, subject to standard stipulations. These encompassed an independent evaluator determining the transaction was optimal for investors and the lack of a superior proposition.
Following a 15-month consideration period, a resounding 99.91% of stakeholders voted to approve the purchase, clearing the path for its completion.
Although the transaction awaits final authorization from the Australian Federal Court and Blackstone must fulfill gaming regulatory obligations, Crown has already submitted the required court petition, signaling the concluding phases of this significant acquisition.
The preliminary hearing is scheduled for May 24th, although this could be delayed until the week of June 6th if additional time is required to examine the documentation.
Should authorities grant approval, the merger will be completed within one week of the court session ending, at which time Crown’s investors will obtain their distributions.
It appears that Crown Resorts’ desirable sites and profit-generating capacity were alluring enough to draw a purchase offer, despite the fact that the regulatory obstacles it’s encountering probably affected its worth.
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