Australian casino operator Crown Resorts Limited has reportedly announced that talks are being conducted on a $ 7.1 billion deal that could result in its sale to its US counterpart Wynn Resorts Limited.
According to a report by GGRAsia, Crown, which is listed on the Sydney Stock Exchange, detailed on Tuesday on the basis of an official file that the company is conducting “confidential discussions” with its Las Vegas-based lawyer on a possible change of control.
Crown Resorts Limited is responsible for the Crown Perth facility in Western Australia and for Victoria’s much larger venue in Crown Melbourne. Wynn [Resorts Limited] is reportedly receiving “all necessary regulatory approvals and a recommendation from the Crown [Resorts Limited] Council. “
Headquartered in Melbourne, Crown Resorts Limited is controlled by Australian billionaire James Packer and also operates the Crown London Aspinalls UK plant. The Australian company stated that the details of the proposed cash and equity business of Wynn Resorts Limited were still to be reconciled, while the investment banks UBS Group AG and Goldman Sachs acted as financial advisors.
According to reports, a submission from Crown read …
“The proposal includes an acquisition of Crown [Resorts Limited] by Wynn [Resorts Limited] via a scheme of arrangements for a combination of cash and Wynn [Resorts Limited] shares.”
Wynn Resorts Limited operates two integrated casino resorts in Las Vegas, as well as the vast facilities of Wynn Macau and Wynn Palace Cotai in Macau and also hopes to receive its $ 2.6 billion Encore Boston Harbor venue as of June 23 to be able to open. The ultimate fate of his Massachusetts-based company awaits the outcome of a local investigation into several sexual assault allegations made last year against Steve Wynn, the company’s former chairman and chief executive officer.
Wynn is now headed by Matt Maddox, and the operator in Nevada has confirmed through an official filing with the Securities and Exchange Commission that there has been “preliminary discussions” with Crown Resorts Limited regarding a possible change of control.
Wynn has published the following …
“No agreement was reached between the parties on the structure, value or terms of a transaction. There can be no assurance that these conversations will result in a transaction. Wynn [Resorts Limited] does not currently intend to comment on the potential transaction with Crown [Resorts Limited] unless required by law. “
Editor’s note: After completing this story, Wynn Resorts Limited issued a brief follow-up statement stating that it had later terminated the dialogue with Crown.
According to Wynn …
“After early disclosure of preliminary discussions, Wynn Resorts [Limited] has terminated all discussions with Crown Resorts [Limited] regarding a transaction.”