Wynn Resorts in Talks to Buy Crown Resorts
A Nevada-based gaming enterprise, Wynn Resorts, is in negotiations to purchase the Australian gambling firm, Crown Resorts. The proposed purchase price is A$14.75 per share, giving Crown a valuation of about A$10 billion.
Crown has stated that the offer is valued at A$14.75 per share, resulting in a total valuation of the entire Crown business at roughly A$10 billion (£54.7 billion/€63.4 billion/$71.5 billion).
The acquisition will be financed with a 50% cash and 50% Wynn stock split, but the deal’s specifics are still being worked out as the two companies engage in discussions.
Crown (owner of Betfair Australia) indicated that the offer is contingent upon several conditions, including due diligence, Wynn securing the necessary regulatory approvals, and a recommendation from the Crown board.
The Australian firm also stated that the proposal is preliminary, confidential, non-binding, and suggestive, and that negotiations are in their early stages. There is no guarantee that these discussions will lead to a finalized agreement.
Wynn, in its own statement, mirrored many of these points, stating that it would refrain from further comment on a potential transaction with Crown unless legally obligated.
Shares of Crown Resorts experienced a significant surge of 20% on April 9th, concluding the day at A$14.05.
During February, Crown disclosed a substantial decline in its online operations, following the sale of its CrownBet brand to William Hill’s Australian operations in April of the previous year. Total revenue for its Crown Digital division in the six-month period ending December 31st experienced a 65.6% year-over-year decrease, reaching A$65.9 million.
Crown’s digital division constitutes a relatively small portion of its overall business, which primarily focuses on casino resorts in prominent Australian cities and Aspinall’s establishment in London. However, the company also encountered revenue reductions during the period.
Normalized revenue at Australian resorts amounted to A$1.54 billion, representing a 1.2% year-over-year decrease. Main floor gaming revenue saw an increase of 0.9%, reaching A$867.7 million, while VIP program play experienced a 12.2% decline, settling at A$19.9 million.
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