The Crown Resorts Ltd (ASX: CWN) share price is under the spotlight after announcing an update about the potential Blackstone takeover.
What was the update?
Crown reminded investors that the proposal was subject to a number of conditions, including a condition that Blackstone receive regulatory confirmation that a Blackstone-owned Crown is considered a suitable person to continue to own and operate the Sydney, Melbourne and Perth licences.
Blackstone has written to the casino business saying it was modifying its regulatory approval condition.
Blackstone wants to receive approval from each relevant regulatory authority to acquire 100% of the issued shares.
It also said that Crown’s Victorian or Western Australian casino licence can’t be, or is threatened to be, cancelled, suspended or surrendered (or subject to a similar action), or ILGA confirms, or threatens to confirm, that Crown’s NSW licence is not to be granted (or subject to a similar action).
Blackstone also included conditions referring to gaming regulatory authorities imposing terms or conditions on Crown that would constitute a material adverse change.
It also referred to the royal commissions into Crown taking similar actions as mentioned above would also be a condition.
The casino business said the expectation of Blackstone is that it will receive probity approval from each of the state gaming regulators to acquire Crown’s shares by the third quarter of 2021.
The board are still assessing the offer, regarding the value and terms of the offer.
