American private equity management firm The Blackstone Group Incorporated has reportedly inserted a number of new conditions into its proposed $6.2 billion takeover offer for Australian casino operator Crown Resorts Limited.
According to a report from Inside Asian Gaming, the New York-headquartered hedge fund yesterday revealed that it is only prepared to move forward with the envisioned transaction if it receives greater security surrounding the regulatory approval process. The source explained that this stipulation relates to a previous provision that could see the buyer abandon its pursuit of Crown Resorts Limited should either of the firms be found unsuitable to hold a casino license for properties in the states of New South Wales, Victoria and Western Australia.
The Blackstone Group Incorporated reportedly now wants this confirmation to go a step further with approval from the regulatory authorities for the three Australian jurisdictions being set as a prerequisite for the completion of its proposed acquisition of Crown Resorts Limited. This would purportedly allow the multinational investments giant to have security in taking over the running of casino operations inside the renowned Crown Melbourne and Crown Perth facilities and work towards bringing gaming tables to the new Crown Sydney development.
As if this wasn’t enough security and The Blackstone Group Incorporated, which manages assets worth in the region of $619 billion, has reportedly moreover requested a provision that would terminate its takeover of Crown Resorts Limited should the operator’s casino licenses for Western Australia or Victoria be cancelled, suspended or threatened. This condition would purportedly be likewise extended to New South Wales where the target its working with the New South Wales Independent Liquor and Gaming Authority to reverse a late-February judgement in order to bring casino gambling to the $1.5 billion Crown Sydney venue.
Finally, the buyer reportedly furthermore now wants a stipulation that would allow it to pull out of the proposed acquisition should regulators in Australia attach any new conditions or terms to the casino licenses already held by Crown Resorts Limited. Offering some comfort and The Blackstone Group Incorporated purportedly disclosed that it would only seek to exercise this option should such revised rules materially impact the value of the operator’s existing authorizations for Victoria and Western Australia.
Despite its new-found caution and The Blackstone Group Incorporated still reportedly expects to receive full probity approval by the third quarter although such a timeline is not being linked with its ability to finance the proposed takeover. Executives for Crown Resorts Limited are now purportedly said to be assessing the new conditions attached to the envisioned takeover offer and could now make a definitive decision on their desirability by the end of June.