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Busy month continues for Crown Resorts

Mon, Apr 22, 12:37pm by Staff Writer

Crown Resorts has had a busy month of April and there is still plenty left to come, Casino Australia reports.

Talks between Crown Resorts and Wynn Resorts about a potential $10 billion takeover were serious until Crown made the information public.

That is something Wynn did not take kindly too and within 24 hours, Crown announced that Wynn had “terminated all discussions with Crown Resorts concerning any transactions.”

On April 7, the day before any information about the possible Wynn acquisition of Crown, the stock price for Crown was $11.74.

As news spread from Crown’s announcement of a potential deal on April 8, the price per share soared to its high point of $14.05. It was the highest point since it hit $14.37 in August 2018 upon solid results from investments in high-stakes gamblers and VIP turnover.

The following day, when Wynn pulled its deal from the table, the price sunk to $12.77.

On April 7, the day before any information about the possible Wynn acquisition of Crown, the stock price for Crown was $11.74.

As news spread from Crown’s announcement of a potential deal on April 8, the price per share soared to its high point of $14.05. It was the highest point since it hit $14.37 in August 2018 upon solid results from investments in high-stakes gamblers and VIP turnover.

The following day, when Wynn pulled its deal from the table, the price sunk to $12.77.

Analysts have subsequently weighted in about more potential bids for Crown versus the possibility that Packer may be anxious to sell. In the meantime, the Crown price has hovered around the $13.00 mark, closing on April 16 at $13.15 per share.

Plenty interested in Crown

Bloomberg is reporting that a number of potential suitors may be gearing up to talk to Crown Resorts about a takeover.

Of course, Crown has declined to say anything about another deal and is understandably cautious.

A Deutsche Bank representative said casino giants like US-based Hard Rock International and Malaysian based Genting may reach out to Crown to discuss options.

Hard Rock has been seeking expansion outside of North America and eyeing a licence in the new Japanese market.

Genting already spans the globe and has experience in the Australian marker that it could put to use.

Wynn is also likely to return to the table according to Deutsche Bank, based on an assumption that the deal was too far along and too positive to abandon altogether.

A managing partner at Delta State Holdings speculated that a company with operations in Singapore or Macau might be good matches for Crown in light of the regional expansion opportunities.

SunCity Holdings was another name bandied about in recent times.

The company wants to expand beyond Macau, as it is building a casino in Vietnam. It has said that the price set by Wynn is too high for it to be involved.

Mr Packer owners 47 per cent in Crown through his Consolidated Press Holdings and has reportedly lost out on a $2 billion payout and 10 per cent stake in the combined Wynn-Crown entity as a result of the deal’s failure.

In 2018 he resigned as director at Crown, citing mental health issues.

Macau a turning point

Packer’s global ambitions took a hit when Chinese authorities rounded up Crown’s staff on the mainland, Macau Daily Times reported.

A court convicted 19 current and former employees for illegally promoting gambling.

Packer was at the time staying in a house in Los Angeles with close friend Warren Beatty.

Packer recalls in the book that he was drinking as much as a bottle of vodka everyday, with Beatty driving him to a psychiatrist for medication.

The episode made Packer desire a more simplistic life and he lived for an extensive period at his polo estate in Argentina.

Crown had closed almost all of its regional marketing offices in Asia within a year of the China debacle.

This funneled big stakes players to Australia and sold out of the Macau casino venue.

The company also ditched a plot in Las Vegas where Packer once hoped to build a casino.


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