Wynn terminating discussions with Australia’s Crown Resorts after deal talks leaked

on Apr9
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People pose for photographs in front of the Wynn Macau casino resort in Macau, China, on Tuesday, July 24, 2018.

Paul Yeung | Bloomberg | Getty Images

People pose for photographs in front of the Wynn Macau casino resort in Macau, China, on Tuesday, July 24, 2018.

The world’s No. 2 casino operator Wynn Resorts has terminated deal talks with Australia’s Crown Resorts, after the discussions were prematurely leaked shortly after the Las Vegas company approached Crown Monday with a A$10 billion ($7.1 billion) takeover.

The deal, which Wynn Resorts hoped would expand its geographic reach in the midst of growth hurdles in Asia, would have offered Wynn a hedge against Macau, the Chinese gambling hub where its licenses are up for renewal, as well as two revamped Australian casinos and a third that’s still being built on the Sydney harbor front.

“Following the premature disclosure of preliminary discussions Wynn resorts has terminated all discussions with Crown Resorts concerning any transaction,” the company said in a statement.

Wynn said in an SEC filing Tuesday that there is “no assurance that these discussions will result in a transaction” and will not comment further on the subject.

The deal would have been Australia’s biggest M&A deal so far this year. The proposal had an implied value of A$14.75 a share, half in cash and half in Wynn shares, Crown told the Australian Stock Exchange.

Talks were at a beginning stage, with no agreements on value or deal structure, and the proposal had not reached the board yet.

Crown is controlled by billionaire James Packer, who stepped down from the company’s board last year due to mental illness. The deal would have ended his career as a casino mogul with a A$4.7 billion payout.

This story is developing. Please check back for updates.



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