Blackstone Buys Stake In Crown Resorts

Melco has sold part of its stake in Crown Resorts to The Blackstone Group

Key points:

  • Blackstone has purchased almost a 10% stake in Crown Resorts

  • Purchased c. 67.7m shares of Crown for $8.15 per share

  • Bought from Melco, which is currently under investigation

Melco Resorts & Entertainment has sold its 9.99% stake in Crown Resorts Ltd to an entity owned by private equity fund The Blackstone Group.

Crown Resorts announced the sale, saying Blackstone’s Midnight Acacia Holdings Pte unit purchased the 67.7m shares of Crown held by Melco for $8.15 per share.

Melco had purchased the shares from James Packer as half of what was supposed to be a near 20% stake they were taking.

Subsequently Melco canceled their plans for the remainder of the purchase following an investigation, that is ongoing, into improprieties at Crown including this transaction.

The NSW Independent Liquor & Gaming Authority said this will not stop the investigation into the James Packer/Melco transaction from continuing.

The hearings have been postponed numerous times, the last one due to Covid-19, the previous one because Melco was originally able to get a court to say they did not have to turn over private documents. Melco had purchased the 9.99% stake from Packer at A$13 a share so they are taking quite a loss on this.

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