Blackstone bid could help Crown keep Sydney casino licence
Fitch Ratings said the Blackstone Group’s offer to buy Crown Resorts could allow it to keep its licence to run its new casino in Sydney’s Barangaroo district.
Australia.- Fitch Ratings said that Blackstone Group’s offer for Crown Resorts could allow the company to meet regulatory requirements to keep the licence for its second Sydney casino.
According to Fitch, an acquisition by Blackstone Group “would permanently end the relationship with Crown’s largest shareholder, James Packer’s Consolidated Press Holdings (CPH)”, something that would go down well with the New South Wales regulator.
However, the credit ratings provider also stated: “It remains crucial that Crown continues its remediation process to address all the regulators’ concerns, particularly amid Royal Commissions in its two main operating jurisdictions.”
Local media news reported Blackstone Group could be pre-empting a partnership with Crown’s local rival Star Entertainment Group.
Blackstone Group has made a non-binding offer to acquire all remaining shares in Crown Resorts for AU$11.85 cash per share.
Crown Resorts faces more regulatory probes
There are currently two Royal Commissions investigating Crown Resorts, one in Victoria, where Crown Resorts runs Crown Melbourne and the other in Western Australia, where the casino operator runs Crown Perth.
The final report from the New South Wales Independent Liquor & Gaming Authority’s (ILGA) inquiry into Crown Resorts found the casino operator to be “quite unsuitable” to hold a licence for its new casino in Sydney’s Barangaroo district.
