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Crown Resorts Loses Its Reign

After a relatively short and speckled initiation, shares in Crown Resorts Ltd are trading for the last time on the ASX today.

Shares in the prospective casino and resort company ended their final day up 0.31% to $13.09 a share. After today, Crown will be suspended from close of trading today following the company’s latest update on its takeover.

In its statement, Crown advised that the Federal Court of Australia made orders approving the proposed $8.89 billion acquisition. Due to a previously announced scheme of arrangement, Blackstone entity, SS Silver II Pty Ltd will become the new Crown owners after being provided the go ahead on the move.

US company Blackstone is the world’s largest investment firm with about $915 billion in assets under management. Crown is expected to lodge an office copy of the court orders with the Australian Securities and Investments Commission (ASIC) today. This means that the scheme will become legally effective.

While the company’s shares will be suspended, its subordinated notes under the code “CWNHB” will continue to be traded. Blackstone will pay out $13.10 in cash per share to Crown shareholders which they will receive on 24 June.

After the last dreadful couple of years for Crown saw its shares to record heavy falls over the past couple of years. An AUSTRAC investigation along with issues regarding renewal of its gambling licence in Victoria plagued Crown shares.

On the back of the offer, shares in the illustrious resort gained traction and year to date the shares have increased almost 10%. Crown boasts a market capitalisation of about $8.84 billion, and also currently has over 677 million shares outstanding.

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