Wynn Resorts is looking to Expand as they Bid for Australia's Crown Resorts
The casino hotel company , Wynn Resorts, is looking to get bigger as they fend off online gambling as they bid for Australia's Crown Resorts for $7.1 Billion.
By: Quynh Nguyen
As online gambling is growing, Las Vegas originated resort, Wynn Resorts has put up an offer to buy Australia's Crown Resorts for an estimated $7.1 billion. Wynn offer Crown an estimated $10.51 USD or $14.75 Australian dollars per share compared to Monday's closing price of $11.74 Australian dollars. Crown shareholders would receive about 50% of that amount in cash and 50%in Wynn shares.
Crown Resort has said that its board of directors has yet to consider the nonbinding proposal and are not certain that a deal will be reached anytime soon. Crown shares has been significantly been down 20% since August 2018, to which many were concerns about the main-floor gaming revenue. Crown also had issues with Chinese authorities to which they were forced to sell of some of their overseas holdings.
Crown is currently under the billionaire James Packer although he had to stepped down due to health reasoning.
If Crown Resorts does accept the proposal from Wynn Resorts then it would give Wynn assistance to build properties in Australia, especially in Melbourne, Perth and London, along with adding a waterfront casino and hotel that is currently being developed in Sydney.
Just as last year, Penn National Gaming Inc. completed its takeover of Pinnacle Entertainment Inc, to which increased its footprint in the U.S. As for now, Crown is still considering the proposal from Wynn Resorts.
Article By: Mike Cherney
No comments:
Post a Comment