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James Packer eyes a $2billion pay day as he considers selling Crown Resorts

BREAKING NEWS: James Packer eyes a $2billion pay day as he considers selling Crown Resorts to a Las Vegas casino company for $10billion

  • Las Vegas casino company Wynn Resorts has made a takeover bid for Crown
  • The bid values Crown at $10billion and may give Packer a $2billion payout
  • Crown shares jumped 22 per cent on the back of the news on Tuesday morning

James Packer is considering selling his Crown Resorts business to a huge Las Vegas casino company.

Wynn Resorts has made a takeover bid valuing Crown at $10billion.

Crown shares jumped 22 per cent to the highest they’ve been for seven months on the back of the news on Tuesday morning.

James Packer is considering selling his Crown Resorts business to a huge Las Vegas casino company

If the deal goes ahead, Packer – who owns 46 per cent of Crown shares – may get a $2billion payout and a 10 per cent stake in the new merged company, according to The Australian.

Crown confirmed talks were happening in a statement on Tuesday: ‘Crown confirms that it is in confidential discussions with Wynn regarding a potential change of control transaction following approaches to Crown by Wynn.’

The company stressed that no agreement had been reached. 

‘The discussions between Crown and Wynn are at a preliminary stage and no agreement has been reached between the parties in relation to the structure, value or terms of a transaction.’

Wynn Resorts, based in Las Vegas, develops and operates high end hotels and casinos. It posted revenue of US$4.4billion in 2016.

It was founded in 2002 by former Mirage Resorts Chairman and CEO Steve Wynn, and is now run by CEO Matthew Maddox.

Crown’s statement on merger talks 

Crown confirms that it is in confidential discussions with Wynn regarding a potential change of control transaction following approaches to Crown by Wynn. 

The proposal contemplates an acquisition of Crown by Wynn via scheme of arrangement for a combination of cash and Wynn shares. 

The proposal currently contemplates acquisition consideration (50% cash and 50% Wynn shares) with an implied value of A$14.75 per share with the exchange ratio being fixed, using a volume weighted average price for Wynn shares, immediately prior to the announcement of an agreed transaction. 

At the date of the proposal, the volume weighted average price of Wynn shares implied an exchange ratio of 0.042 Wynn shares per Crown share. 

The terms of the consideration are yet to be agreed. The proposal is subject to a number of conditions including due diligence, Wynn obtaining all necessary regulatory approvals and a recommendation by the Crown Board. 

It is stated to be preliminary, confidential, non-binding and indicative. The Crown Board has not yet considered the most recent proposal from Wynn. 

The discussions between Crown and Wynn are at a preliminary stage and no agreement has been reached between the parties in relation to the structure, value or terms of a transaction. 

There is no certainty that these discussions will result in a transaction. 

Goldman Sachs and UBS are acting as financial advisers and Ashurst as legal adviser to Crown.

 

Read more at DailyMail.co.uk