Wynn Resorts has confirmed that talks with Crown Resorts over a possible acquisition have been terminated.
In a statement, Wynn made it clear that “Following the premature disclosure of preliminary discussions, Wynn Resorts has terminated all discussions with Crown Resorts concerning any transaction.”
On Tuesday [9 April, 2019] it was revealed that Las Vegas-based casino juggernaut Wynn Resorts might take over James Packer’s $8 billion casino operation, Crown Resorts.
The Australian company told shareholders it was in “preliminary discussions” with Wynn Resorts “regarding a potential change of control transaction” after Wynn approached Crown Resorts.
Crown Resorts operates casinos in Melbourne and Perth and is currently creating a flagship resort at Barangaroo in Sydney. Crown also holds a 20% interest in Nobu, one of the world’s most recognised lifestyle hotel and restaurant brands.
Wynn Resorts owns and operates properties in Las Vegas, Macau, Cotai and Boston Harbour. This latest takeover bid is estimated to be worth around $10 billion.
“The proposal contemplates the acquisition of Crown by Wynn via scheme of arrangement for a combination of cash and Wynn shares,” the US company said.
This proposal essentially incorporates the consideration of acquisition (50% cash and 50% Wynn shares) with an implied value of $14.75 per share. At the time of the announcement, the Crown Board had not considered Wynn’s most recent proposal.
Representatives at Crown emphasised that “no agreement” had yet been reached between the companies in relation to the structure, or the value, of a possible deal. “There is no certainty that these discussions will result in a transaction,” Crown stated.
Lead image: Crown Melbourne – image credit: Mark Dadswell/Bloomberg