The Australian leader of the game, Crown Resorts, has just received a takeover offer from the American group Wynn Resorts. The latter already has casinos located in Melbourne and Perth as well as another in Sydney. The proposal is estimated at 6.3 billion euros after having carried out preliminary discussions.
No final decision at this time
The American group Wynn Resorts is closely interested in the Australian leader Crown Resorts in order to buy it. The news was announced by the group giving some indications on the title of the agreement. Its takeover offer includes a cash portion and a share buyback at AU $ 14.75, a premium of 26% based on last Monday’s closing price. After appraisal, the contract is worth 10 billion Australian dollars, or 6.3 billion euros. Currently, Crown stock is enjoying a 19.68% jump to AUD 14.05 on the Sydney Stock Exchange. However, the offer price was not met due to ambiguities regarding the actual launch. A statement said that discussions between the two parties were made confidentially and the debate focused on the possible change of control. The group emphasizes that no agreement has yet been decided on the structure, value or the various terms of the transaction. As a result, nothing has been concluded for the moment. Discussions have barely started between the two groups, hence a certain uncertainty at the end of this affair.
Wynn Resorts wishes to expand its offerings beyond the American borders and Macau. If this transaction is finalized, it will be one of the largest mergers and acquisitions this year in the industry. But, the offer falls rather badly in view of the repercussions generated by the arrest of 18 of its employees in China in 2016. Following this arrest, the group was forced to stop its international expansion projects. It goes without saying that his reputation has been tarnished in recent years, particularly after the resignation of founder Steve Wynn over accusations of sexual harassment. This explains this desire for diversification and expansion in order to sustain its growth. Today, the company is focused on its current assets, including casinos in Sydney, Melbourne and Perth.