Monday May 29, 2023

Court approves $8.9b Crown takeover



The $8.9 billion takeover of Crown Resorts by US private equity giant Blackstone has passed its final hurdle after the federal court approved the scheme.

Billionaire James Packer, who owns 37 per cent of Crown shares, stands to receive $3.26 billion after the court, sitting in Melbourne, approved the deal on Wednesday.

Crown’s lawyer David Batt QC made some last-minute alterations to the deal, including that about $67 million worth of shares be excluded.

“In our submission, the scheme is in every respect appropriate for approval of the court,” he said.

Justice Stewart Anderson approved the deal with the amendments.

The takeover ends years of turmoil for Crown after inquiries in NSW, Victoria and WA all found the company unfit to run its casinos amid widespread law breaking.

In May, the casino giant said 92 per cent of Crown shareholders supported the scheme, with 99.9 per cent of their shares cast in favour.

Blackstone is a private equity firm listed on the New York Stock Exchange that invests on behalf of pension funds, large institutions and individuals.



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