Australian casino operator Crown Resorts Ltd said private equity giant Blackstone Group Inc modified the conditions of a proposed $6 billion buyout, saying the target must not lose further state licences before the deal is approved. Last month, the U.S. buyout specialist, which already owns 10% of Crown, offered to buy the Crown shares it does not already own for A$11.85 each, valuing the Australian company at A$8 billion ($6.1 billion).
The modified conditions safeguard Blackstone against an adverse recommendation like the cancellation or suspension of its WA or Victorian licences by either inquiry before the deal is approved by courts, Crown said in a statement on Tuesday.
The statement added that Blackstone expected to receive approvals to buy Crown from each state regulator “by Q3 2021”, without specifying when during the July-September quarter it expected the result. The Victorian and WA inquiries are due to deliver their recommendations in August and November, respectively.
Reporting by Nikhil Kurian Nainan in Bengaluru and Paulina Duran in Sydney; Editing by Subhranshu Sahu and Stephen Coates
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