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Australia's Crown Resorts gets US$7.1b takeover approach from Wynn Resorts

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Australia's Crown Resorts said on Tuesday it was in talks with Las Vegas rival Wynn Resorts about a potential A$10 billion (S$9.65 billion) buyout, sending Crown shares up more than a fifth.

[SYDNEY] Australia's Crown Resorts said on Tuesday it was in talks with Las Vegas rival Wynn Resorts about a potential A$10 billion (S$9.65 billion) buyout, sending Crown shares up more than a fifth.

The proposal has an implied value of A$14.75 a share, half in cash and half in Wynn Resorts shares, Crown said in a statement to the Australian Stock Exchange. Wynn is the world's second-largest casino company.

"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," Crown said in a statement.

Crown shares rose 21 per cent in early trading following the announcement.

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The sale would fetch about A$4.7 billion for the company's former executive chairman, James Packer, who owns 47 per cent of the company and quit the board in 2018 for personal reasons.

A spokesman for Consolidated Press Holdings Pty Ltd, which holds Mr Packer's stake in Crown, was not immediately available for comment.

REUTERS