The Federal Court has approved US private equity giant Blackstone's $8.9 billion takeover of troubled casino operator Crown Resorts.
The acquisition is set to deliver billionaire James Packer a $3.36 billion payday in exchange for his 37 per cent stake in the company, which he has been involved with since 1999.
The court's decision was the final hurdle in the approvals process, following Blackstone getting the green light from state governments in Western Australia, New South Wales and Victoria.
What does it mean for Crown and Packer?
The deal will mean Crown Resorts will become a private company and no longer be required to report to the ASX.
The deal will be finalised on June 24 when the money between Blackstone and Crown will change hands.
Mr Packer is set to exit Crown Resorts after Blackstone’s takeover.
Crown shareholders also backed the Blackstone deal after the board told investors it would be in their best interest.
The moves against Mr Packer meant he had little choice but to sell out of Crown.
They came after years of scandals that included the company being fined for illegally promoting gambling in China where 14 staff were jailed, and several damaging inquiries which found the casino operator enabled money laundering and had links to criminal gangs.
COVID-19 lockdowns and border closures just added to the woes at Crown, which was seeing its profits and share price fall.
Mr Packer’s previous attempt to leave the company in 2019 was scuttled when the would-be buyer reneged in the face of controversy and details of the deal were leaked.
It was Mr Packer's political wheeling and dealing and relationship with Chinese businessman Laurence Ho, in his bid to build a casino at Sydney's Barangaroo, that led to his undoing and was the catalyst for the New South Wales Bergin inquiry, which found Crown was not fit to hold a casino licence.
Why Blackstone and what happens from here?
Blackstone's takeover paves the way for Crown's $2.2 billion Sydney casino at Barangaroo which has been banned from taking bets since opening in 2020.
State regulators have said Crown will be subject to strict conditions.
The Blackstone Group is the world's second-biggest private equity fund.
It owns the MGM Grand, Mandalay Bay and Bellagio hotels and casinos in Las Vegas.
It also owns Spanish company Cirsa, which operates 147 casinos in Spain, Italy and Latin America.
