Australia – American multinational private equity, alternative asset management and financial services firm based in New York City; The Blackstone Group, has today announced that it has purchased 67,675,000 shares in Crown Resorts, which represents a stake percentage of 9.99%.
The Blackstone Group has acquired the near ten percent stake in Crown Resorts from Melco Resorts & Entertainment, a developer, owner and operator of integrated resorts with entertainment and casino gaming facilities in Asia, Australia, and Europe.
According to reports, the shares were valued and acquired at a rate of 8.15 Australian Dollars per share.
The Blackstone Group specializes in private equity, credit, and hedge fund investment strategies and in November last year acquired the Bellagio resort in Las Vegas, Nevada from MGM Resorts in a sale-leaseback transaction. The firm’s latest acquisition was a majority stake in HealthEdge, a health-care software company, a deal which completed just two weeks ago for a sum in the region of $700 million.
The move by Melco Resorts & Entertainment comes as a surprise to some as it had initially planned to acquire a 19.99% stake in Crown Resorts before scaling back operations in February 2020 and re-focusing the business elsewhere.
Reportedly, the move also comes just 24 hours after a number of senior executives at the firm announced that they were voluntarily leaving the company as the impact of Covid-19 continues to take its toll on the business. Chairman Lawrence Ho Yau Lung stated that the departures were ‘only due to the current state of the business environment’.