Blackstone Group buys Melco’s Crown shares

Hedge fund giant acquires a 10% stake in Crown Resorts in $550million deal.

Australia.- Hedge fund giant The Blackstone Group has bought all of Melco Resorts & Entertainment’s shares in Australia’s Crown Resorts Ltd in a deal worth $550million.

In an announcement to Australia’s ASX, Blackstone confirmed it will purchase all of Melco’s 67,675,000 shares in Crown.

This figure represents a 9.99 per cent share in the casino operator, at a share price of AU$8.15 (US$5.32) per share.

The Blackstone Group is one of largest private equity and hedge fund firms in the US, with investments in the gaming and hospitality sectors.

Melco was looking to grow its stake in Crown, but the Coronavirus pandemic and various legal issues prevented the company moving forwards with its plans.

Back in March, the company encountered difficulties with an appeal with the New South Wales Gaming Regulator after they refused to hand over documents related to their attempt to increase their stake in Crown.