SS Silver, a fund-owned entity managed or advised by private equity giant Blackstone, is one step closer to completing the acquisition of Crown Resorts after the proposed transaction has been approved in Western Australia.
Western Australia’s Gaming and Gaming Commission (GWC) and Western Australia’s Racing and Gaming Minister Tony Buty approved the deal earlier today.
Blackstone required local approval in Western Australia, New South Wales and Victoria to proceed with the transaction. Authorities in New South Wales and Victoria also gave a green light to the proposal this week.
Following approval in these regions, the final court hearing date related to the purchase is scheduled for June 15. If the court also approves the acquisition, this will allow Crown to announce the schedule for closing the transaction.
Western Australia clearance means that Blackstone will take over both ownership and control of Crown Perth’s assets if the acquisition goes as expected.
After approving the transaction, Minister Buty expressed his hopes for Blackstone’s management of the Crown, including conducting activities with “highest standards of governance and operations” and investing in Crown Perth.
These were crowned in February this year “Inappropriate” Operates a Perth facility. The Commission did not recommend revoking the license, but instead proposed a series of measures to the operator.
Other conditions that Blackstone faces when a transaction is completed include enhanced reporting of money laundering prevention and responsible gambling activities, further audit requirements, and reporting requirements for investigations by Australian or foreign regulatory agencies.
Non-interference requirements are also set to prevent Blackston institutional investors from engaging in the day-to-day operations of Perth’s Crown Casino, but Blackston has a corporate structure and funding without prior notice and associated approval. It was not possible to change the funding arrangement.
“As a future new owner of Perth Casino, Blackstone must meet many stringent requirements,” Buty said. “These conditions are in line with many recommendations from the recent Royal Commission of Perth Casino.
“The state government has already made significant improvements to the regulatory system and decided to establish a stricter regulatory and governance framework to hold those who own or operate Perth’s casinos accountable. We are still working on it.
“Blackstone’s terms, coupled with future reforms, ensure that Perth’s casinos adhere to good standards.”
Lanny Chopping, Chairman of the Gaming and Gaming Commission, said:
“This detailed and complex process since the application was submitted last year included a comprehensive and independent assessment of the relevant Blackstone entity in accordance with legal requirements.
“Gambling and gambling committee credibility approvals have been granted in accordance with several conditions designed to ensure that the committee has the ability to monitor and monitor licensee management or ownership changes.”
Blackstone first submitted a bid of A $ 8.02 billion (£ 4.63 billion / € 5.33 billion / US $ 5.64 billion) to acquire Crown in 2021. This first bid was rejected, but the $ 8.87 billion bid increase was approved by the Crown Board.
This offer was made when Crown faced many inquiries. In February 2021, after investigations revealed evidence of money laundering at the facility, Crown was deemed unsuitable for operating a casino in Barangaroo, Sydney.
Later that year, Crown was also ruled unsuitable for running a casino. VictoriaAs a result of the investigation, Crown was engaged in “illegal, fraudulent, unethical, exploitative” acts.
Last month, a majority of Crown Resorts shareholders voted in favor of the acquisition. Approximately 92.05% of shareholders attending and voting in favor of the takeover, and 99.91% of shareholder votes in favor of the takeover.
