Blackstone already owns 10 per cent of Crown.Credit:Chris Hopkins
Market sources said that attention will turn to Crown’s Sydney’s rival Star Entertainment,which could either lob a rival bid or partner with Blackstone to operate Crown’s casinos on the $US619 billion ($800 billion) American asset manager’s behalf.
The offer comes as Crown continues to reel in the fallout of the NSW Bergin Inquiry,which found it had facilitated money laundering,went gone into business with figures linked to organised crime and ruled it unfit to run its new $2.2 billion Sydney casino. Crown now two faces royal commissions into its casinos in Victoria and Western Australia.
Argo Investments managing director Jason Beddow said the uncertainty around Crown’s three casino licences and the numerous conditions Blackstone attached to its bid made him doubt how genuine it was. Blackstone already owns 10 per cent of Crown.
He said Blackstone’s condition that it receive confirmation it was suitable to operate Crown’s casinos could not be satisfied until the royal commissions were completed and the future of its NSW was resolved.
James Packer still owns 37 per cent of the shares in Crown.Credit:Sahlan Hayes
“If it’s all approved and they keep everything,then maybe it (the bid) is not enough money. And if they don’t get the licences,well this bid doesn’t exist anyway,” said Mr Beddow,whose fund owns $31.2 million worth of Crown shares. “It’s not as though they’re going to pay $11.85 for naught. It’s a bid without a bid really.”
Victoria’s Royal Commission starts public hearings on Wednesday and is due to report back by August 1. The gaming floors at Crown Sydney were set to open in late December but remain shut while Crown tries to satisfy the NSW gambling regulator it is implementing reforms to make itself a suitable casino licence holder.