Fight for Crown Resorts

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Peter Brandt December 24, 2021

The takeover struggle for Crown Resorts is pushing further in the face of new information. According to reports from the Australian daily newspaper “The Australian” (TA), Las Vegas Sands (LVS) had already put itself in the position last year to take over the Australian gambling group. This was preceded by a conversation between the late LVS boss Sheldon Adelson and Crown Resorts boss James Packer.

Las Vegas Sands (LVS) allegedly has a deal for taking over crown resorts in his pocket. ((© ️Michal Dolnik/Unsplash)

Deal in the back room?

According to the “The Australian”, Sheldon Adelson made an agreement with James Packer before his death on January 11, 2021 that the hot crown resorts in the possession of Las Vegas Sands should pass. At the beginning of the year, the two gambling magnates should be one unofficial deal completed to have. The information cannot be officially confirmed, but level TA is very likely. Adelson and Packer were seen on New Year’s Eve on the French Riviera last year. At that time there are said to have been taken over.

Death at the age of 87. Sheldon Adelson was considered an absolute icon in the gambling industry during his lifetime. As Chairman and Chief Executive Officer from Las Vegas Sands, he led the group to the top of the industry. At the beginning of the year, however, he lost the fight against cancer. He had been suffering from non-Hodgkin lymphomas for a long time and died on January 11, 2021 at the age of 87.

The report of the Australian daily newspaper mentions no price information that Adelson and Packer are said to have negotiated. However, many representatives from the gaming industry and other interested parties would now position themselves to take over Crown Resorts. The Australian gaming group currently has an offer from the private equity company Blackstone, which Value value per share with $ 8.90 (USD). Packer, who is a majority owner at Crown Resorts with 37 percent, is higher the value of his company – $ 10.70 per share. It is currently completely unclear whether there will be any negotiation talks between the games.

In any case, there is no shortage of potential interested parties. According to the TA, speculation would compress that too Star Entertainment intervened in the takeover struggle have. The long-time crown rival wants to make an offer to create a gaming giant on the Australian gaming market.

Deal makes sense for sands

A few years ago, Las Vegas Sands established a new philosophy to organize the company of modern ones. The company’s internal “revolution” triggered friction between Adelson and the board, ultimately the first steps for the realignment were put into practice. In 2019, Sands sold the integrated resort complex Venetian and Palazzo as well as the Sands Expo and the Convention Center. A location in Pennsylvania was also sold. As a result, the group has no assets in the United States.

Sands is currently completely dependent on its five integrated resorts in Macau and Marina Bay in Singapore. The two gambling facilities attract gigantic player masses year after year. Since corona pandemic However, that has changed.

The past two years have restricted the flourishing day -to -day business enormously. Due to the omikron variant, all over Asia Travel restrictions introduced. The authorities in Macau have just issued strict regulations for gambling operators. The Sands share price has been since the beginning of the year fell by 40.45 percent. According to the matching media reports, it is very likely that the negative development could have a rethink with Sands. With the acquisition of Crown Resorts, the group would be broader and prepared against the ongoing crisis.

Old. The Coronavirus omikron variant is currently keeping the entire planet in suspense-including the global gaming industry. The share price of numerous corporations has been in free fall for several months. The industry had just recovered from the crisis year 2020. The US gambling market recorded a new sales record.

Wynn Resorts also in the race

As “The Australian” reports, Wynn Resorts has entered the race for Crown. The industry giant only had in 2019 Purchase offer for the competitor rejected. Now Wynn has expressed interest in a takeover. The parallels to Sands are clearly recognizable. Wynn is also heavily dependent on Macau. In addition, there was a change at the management level not too long ago. However, it is not 100 percent clear whether Wynn will actually start an attempt to take on.

Wynn Resorts. The group is one of the big players in the gambling industry. Wynn runs several hotels with integrated casinos and could have a good chance of taking over crown resorts if there is a serious offer.