Australia’s Crown Resorts gets $7.1 billion takeover approach from Wynn Resorts

Business News

Australia’s Crown Resorts said on Tuesday it was in talks with Las Vegas rival Wynn Resorts about a potential A$10 billion ($7.1 billion/£5.5 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 percent in early trading following the announcement.

The sale would fetch about A$4.7 billion for the company’s former executive chairman, James Packer, who owns 47 percent of the company.