Las Vegas's Wynn Resorts seeking Crown Resorts

Las Vegas's Wynn Resorts seeking Crown Resorts
Las Vegas's Wynn Resorts seeking Crown Resorts

Crown Resorts has announced a pause in trade of its ASX-listed shares amid a takeover bid for the James Packer-controlled casino operator.

They confirmed in an ASX announcement that the company has attracted the interest of Las Vegas giant Wynn Resorts, with a bid potentially on the way, perhaps a merger.

Shares in Crown, which is majority owned by James Packer's Consolidated Press Holdings, were valued at $11.74 ahead of the market open on Tuesday - down 17 percent from August's near three-year high of $14.23.

The current proposal currently contemplates acquisition consideration (50% cash and 50% Wynn shares) with an implied value of A$14.75 per share with the exchange ratio being fixed, using a volume weighted average price for Wynn shares, immediately prior to the announcement of an agreed transaction, according to the Crown ASX release.

At the date of the proposal, the volume weighted average price of Wynn shares implied an exchange ratio of 0.042 Wynn shares per Crown share.

Crown have stated that the terms of the consideration are yet to be agreed, with the proposal being subject to a number of conditions including due diligence, Wynn obtaining all necessary regulatory approvals and a recommendation by the Crown Board.

It is stated to be preliminary, confidential, non-binding and indicative.

The Crown Board said they has not yet considered the most recent proposal from Wynn.

Crown stated that discussions were in a "preliminary stage" and that "no agreement has been reached between the parties in relation to the structure, value or terms of a transaction".

They added that there is no certainty that these discussions will result in a transaction

Goldman Sachs and UBS are acting as financial advisers to Crown, and Ashurst is acting as legal adviser.

Notably Crown recently pulled back on its international expansion plans, including exiting its joint venture partnership with Melco Resorts in Macau and the sale of 34.6 acres of land on the Las Vegas Strip.

That land was purchased by Wynn Resorts for AU$300 million in December 2017.

Under the deal James Packers net worth would soar AU$800 million.

Tags: 
Crown Resorts Wynn Resorts

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