Las Vegas giant Wynn makes play for Crown; UBS, Goldman on defence


Crown Resorts owns casinos in Melbourne, Perth and London, and has development projects in Sydney and Melbourne.

Analysts expect it to report $3.3 billion revenue and $826 million earnings before interest, tax, depreciation and amortisation in the 2019 financial year, and the company has about a $7.7 billion enterprise value.

James Packer’s Consolidated Press Holdings Pty Ltd owns a 46.1 per cent stake.

Interestingly, Packer and Wynn, who stepped down as CEO of Wynn Resorts in 2018, know each other well.

“I think Steve Wynn is the greatest developer in the world,” Packer said in an interview with The Australian Financial Review in 2012, and he was reported to have attended Wynn’s wedding in 2011. The two would go on to compete in Macau.

It comes after a period of heavy cost cuts and corporate re-shaping at Crown Resorts, which has seen the company sell assets and re-focus on its Australian franchise.

The sales have included land in Las Vegas, its stake in Macau’s Melco Resorts & Entertainment, its share of corporate bookmaker CrownBet and two floors in Crown’s luxury Barangaroo project in Sydney. Other potential deals, including a spin-off of its Australian properties into a listed real estate trust, have also been considered.

The strategy change has come as John Alexander, a former media executive, long-time confident of Packer and director of Crown since 2007, took the reins at Crown Resorts in 2017.

A spokesperson for Crown Resorts didn’t respond to a request for comment.



Source link Finance News Australia

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