Blackstone Group Puts Forward New Demands To Acquire Crown Resorts
The American based Blackstone Group submitted an acquisition proposal to Crown Resorts in March expressing interest in buying out the troubled and controversial Australian casino operator.
Crown Resorts confirmed that it had received a non-binding and unsolicited proposal from the U.S investment giant and said that it would discuss the same with its board before making a decision.
Crown Resorts has so far not made any announcement regarding the proposal which means it is still being reviewed.
Former chairman James Packer who is the majority stakeholder at Crown Resorts made it clear that whatever the board decides, the final decision will be taken by him.
Given the fact that Crown Resorts has not declined the proposed offer which is estimated to be around A$8.2 billion, it appears that Crown Resorts might be seriously considering the acquisition proposal where Blackstone is agreeing to pay out $9.01 per share. Some market analysts have claimed that Crown Resorts is delaying the process because it wants a better bid from the Blackstone Group or other interested parties.
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The Blackstone Group has now submitted a letter to Crown Resorts but it is not regarding an increase in price. The letter sets out a number of stipulations for Blackstone to proceed with the proposed acquisition.
Some Of The Key Stipulations
Crown Resorts has released information regarding the key demands put forward by Blackstone. The key stipulation is the Blackstone wants regulatory approval from state regulations where Crown Resorts has its operations confirming that Crown Resorts is still suitable to run its casino operations in Melbourne, Sydney and Perth.
Crown Resorts has already been investigated by the NSW gaming regulator and is being investigated by the gaming regulator in Western Australian and Victoria regarding its suitability to continue to hold a gaming license. The investigations were launched after Crown admitted to money laundering and having ties to individuals in the Asian criminal syndicate.
Blackstone has made it clear that the acquisition is valid only if none of the casino licenses are suspended by the gaming regulator. The NSW gaming regulator has already indicated that Crown Resorts will not have its gaming license stripped and a similar decision is expected in both Victoria and Western Australia.
We will have to wait for a few more months to get the official decision from all three states.
Carolyn DuttonAuthor
Carolyn is our legislation expert, with a background in law she is able to cover the current state of gambling around the world
