Australian casino operator, Crown Resorts Limited, has reportedly revealed that it is holding talks regarding a $7.1 billion deal that could see it sold to American counterpart, Wynn Resorts Limited.
According to a report from GGRAsia, Sydney-listed Crown, used an official Tuesday filing to detail that it is conducting ‘confidential discussions’ with its Las Vegas-headquartered suitor ‘regarding a potential change of control transaction.’
Just the start:
Crown Resorts Limited is responsible for the Crown Perth facility in Western Australia as well as Victoria’s much larger Crown Melbourne venue and reportedly declared that the ongoing negotiations are ‘preliminary, confidential, non-binding and indicative’ with any subsequent agreement ‘subject to a number of conditions including due diligence, Wynn [Resorts Limited] obtaining all necessary regulatory approvals and a recommendation by the Crown [Resorts Limited] board.’
Melbourne-based, Crown Resorts Limited, is controlled by Australian billionaire businessman, James Packer, and also operates the Crown London Aspinalls facility in the United Kingdom. The Australian firm explained that the particular details of the proposed cash and share deal from Wynn Resorts Limited ‘are yet to be agreed’ while investment banks UBS Group AG and Goldman Sachs serving ‘as financial advisers.’
Reportedly read a filing from Crown…
“The proposal contemplates an acquisition of Crown [Resorts Limited] by Wynn [Resorts Limited] via scheme of arrangement for a combination of cash and Wynn [Resorts Limited] shares.”
For its part, Wynn Resorts Limited runs a pair of integrated casino resorts in Las Vegas as well as the giant Wynn Macau and Wynn Palace Cotai facilities in Macau and is moreover hoping to open its $2.6 billion Encore Boston Harbor venue from June 23. However, the ultimate fate of its enterprise in Massachusetts is waiting on the outcome of a local investigation into multiple allegations of sexual assault that were last year levied against the firm’s former Chairman and Chief Executive Officer, Steve Wynn.
Wynn is now headed by Matt Maddox and the Nevada operator used an official filing with the United States Securities and Exchange Commission to confirm that it was holding ‘preliminary discussions’ with Crown Resorts Limited ‘regarding a potential change of control transaction.’
Wynn released the following…
“No agreement has been reached between the parties in relation to the structure, value or terms of a transaction. There is no assurance that these discussions will result in a transaction. Wynn [Resorts Limited] does not currently intend to comment further on the potential transaction with Crown [Resorts Limited] unless required by law.”
Editor’s note: Following the completion of this story, Wynn Resorts Limited issued a brief follow-up statement where it explained that it had subsequently called off its dialogue with Crown.
According to Wynn…
“Following the premature disclosure of preliminary discussions, Wynn Resorts [Limited] has terminated all discussions with Crown Resorts [Limited] concerning any transaction.”