Wynn Resorts Offers to Buy Crown for A$10 Billion

   By Mike Cherney 
 

SYDNEY--Australia's Crown Resorts Ltd. (CWN.AU) said Las Vegas gaming giant Wynn Resorts Ltd. (WYNN) made a takeover offer worth about 10 billion Australian dollars (US$7.1 billion), the latest sign that casinos are seeking scale amid the threat from online gaming.

Wynn's offer would value Crown at A$14.75 per share, compared to Monday's closing price of A$11.74. Crown shareholders would receive 50% of that amount in cash and 50% in Wynn shares.

Crown said its board has not yet considered the most recent, non-binding proposal. The discussions are at a preliminary stage and there's no certainty a deal will be reached, it said.

Crown shares are down about 20% from their recent highs last August, reflecting concerns about main-floor gaming revenue, the company's efforts to rebuild its VIP business following a crackdown from Chinese authorities and the progress of new developments in Australia. Crown refocused on its domestic Australian assets after the China crackdown in 2016 and sold off some overseas holdings.

The company is controlled by billionaire James Packer, though he stepped down from Crown's board last year because of mental health reasons.

Some bankers have said the industry is ripe for dealmaking, as casinos look to diversify their offerings, improve margins and lower costs. Aside from Las Vegas, Wynn operates casinos in Macau and is opening one soon in Massachusetts. A combination with Crown would give it properties in Melbourne, Perth and London, plus a waterfront casino and hotel being developed in Sydney.

Last year, Penn National Gaming Inc. completed its takeover of Pinnacle Entertainment Inc., increasing its regional U.S. footprint. And in February, The Wall Street Journal reported that billionaire shareholder activist Carl Icahn owned a stake in Caesars Entertainment Corp. and planned to push the casino operator to consider selling itself.

-Write to Mike Cherney at [e-mail]

(END) Dow Jones Newswires

April 08, 2019 20:55 ET (00:55 GMT)

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