Crown Resorts, Australia’s premier casino and hospitality group, is seemingly on the market for a buyer.
It was recently reported by the Australian Financial Review that the James Packer controlled Crown Resorts and Wynn Resorts were involved in secret takeover talks and a deal was being discussed.
After Crown publicly confirmed the talks, Wynn made the decision to end negotiations and walk away, feeling that they were revealed too soon.
”The proposal is subject to a number of conditions including due diligence, Wynn obtaining all the necessary regulatory approvals and a recommendation by the Crown board,” said Crown in a statement, following the publication of the talks. “The Crown board has not yet considered the most recent proposal from Wynn.”
Important Industry Acquisition
This, however, put the spotlight on a very important piece of information – Crown Resorts is open to hear proposals from interested buyers.
There is no doubt that the acquisition of Crown would be one of the biggest deals in the gambling industry in at least a decade.
A takeover deal could also do wonders for Crown, as share prices showed this week. As soon as the talks were revealed, share prices hiked 20%, and when the discussions collapsed, Crown stock lost 9.1% in value.
While the estimated $10 billion deal with Wynn is off (for now), other conglomerates may begin sniffing around to make their own bids. Potential bidders include Hard Rock International and Genting.
James Packer Lowers Profile
Last year, James Packer decided to resign from Crown’s board of directors, stating that he was dealing with mental health issues. Those close to him said that he wanted to lead a ‘lower-profile’ life and that he had been “disengaged from the business for some time.” It is believed that it was Packer himself who sent out the signal to gambling giants that his family legacy was up for sale.
Crown owns casinos in Melbourne, Perth and London. It is due to open its $2.2 billion complex in Barangaroo in Sydney.