US private equity firm Blackstone has provided more details on its bid for Australian operator Crown Resorts, saying it expects to clear the country’s notoriously tough probity checks by the third quarter of this year.
The expected timetable was disclosed in a letter to the company detailing modifications to some of the onerous regulatory conditions attached to its offer.
The firm is seeking to buy Crown for A$11.85 a share, valuing the company at about $8bn, which most analysts have said is likely to be too low to gain the approval of Crown’s board.
Blackstone stipulates that it must receive approval for its bid from each of the three states in which Crown operates. That’s Western Australia, Victoria and New South Wales.
It said it’s also contingent on the group retaining its suitability to hold a licence in each, without new regulatory conditions that could have a material adverse impact on the financial situation of the group.
Crown is under investigation by a Royal Commission in Western Australia and Victoria and regulators in New South Wales have already found it unsuitable to hold a licence in Sydney for its newly opened property in Barangaroo.
Source: Asia Gaming Brief