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Blackstone Inc. → Crown Resorts Limited

completed
Deal announced2022-02-14
BuyerBlackstone Inc.
SellerCrown Resorts Limited
SectorGaming & Leisure
ValueA$8.9B
Deal typeM&A

Blackstone acquired 100% of Crown Resorts, owner of casino resorts in Melbourne, Perth and Sydney, via a scheme of arrangement, marking Blackstone's largest investment in Asia Pacific to date.

Why the buyer wanted it

Blackstone saw long-term value in Crown's premium integrated resort real estate and gaming licences across three Australian cities, consistent with its broader real estate and hospitality investment strategy.

Why the seller agreed

Crown's board recommended the offer after a prolonged period of regulatory scrutiny (including findings of unsuitability to hold a casino licence in NSW and Victoria), viewing the cash offer as certain value for shareholders amid an uncertain standalone regulatory outlook.

Stock reaction

Crown shares traded up toward the $13.10 offer price following the announcement, reflecting market confidence the scheme would complete; the offer represented a premium of about 32% to Crown's share price prior to Blackstone's initial approach.

Deal mechanics

Buyer's advisors

Morgan Stanley and Citi (financial advisers to Blackstone); Clayton Utz (legal)

Seller's advisors

UBS (financial adviser to Crown); Allens (legal)

Deal structure

All-cash scheme of arrangement at $13.10 per share

Regulatory approval

Approval from gaming regulators in NSW, Victoria and Western Australia; Supreme Court of Victoria scheme approval

Financing source

$5.4 billion debt financing arranged with Morgan Stanley, Citi and Deutsche Bank

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