Blackstone Group’s proposed acquisition of Crown Resorts has been approved by Australia’s Foreign Investment Review Board (FIRB), the first step in the US-based group’s takeover bid.
In a communication sent to all investors, Crown Resorts confirmed that the buy-out remains subject to a number of further conditions including gaming regulatory approval, shareholder approval, and legal court approval. However, winning approval from the FIRB was considered a major milestone in the overall process.
Just last month, the casino operator advised its shareholders to vote in favor of the AU$8.9 billion ($6.3/€6 billion) all-cash offer from the Blackstone Group.
During his recommendation, Crown chairman Ziggy Switkowski said:
“The Board has fully considered the Blackstone Transaction and unanimously recommends the proposal, subject to customary conditions such as an independent expert concluding the transaction is in the best interests of Crown shareholders and there being no superior proposal.
When considering any proposal, the Crown Board has consistently stated it is committed to maximizing value for Crown shareholders. The Crown Board and management have made good progress in addressing a number of significant challenges and issues emerging from the COVID-19 pandemic and various regulatory processes.
Nevertheless, uncertainty remains, and having regard to those circumstances and the underlying value of Crown we believe the Blackstone Transaction represents an attractive outcome for shareholders.”
He also noted that Blackstone‘s all-cash offer “provides shareholders with certainty of value.”
The FIRB approval comes just over a year after Blackstone made its first offer of AU$11.85 per share. This was then increased to AU$12.35 per share in May of 2021 but was rejected by the Crown Resorts board.
Then, on January 13th, 2022, Blackstone made its final all-cash offer of AU$13.10 per share which was accepted.
Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.