A prominent player in the Asian gaming industry, MGM Resorts, has recently acquired a substantial stake in Crown Resorts, an Australian gambling enterprise. They shelled out a hefty AU$1.76 billion for a 19.99% ownership interest.
MGM purchased 135 million shares from CPH Crown Holdings at AU$13.00 per share, totaling approximately AU$1.76 billion.
The transaction will be completed in two phases, the first on June 6th and the second by September 30th. While not requiring specific authorization, MGM will seek approval from gambling regulators in Victoria, Western Australia, New South Wales, and other jurisdictions.
Upon receiving clearance, MGM intends to secure a seat on Crown’s board to represent their significant investment. They may even explore the possibility of acquiring additional shares in the future.
MGM Resorts International’s head honcho, Pansy Ho, declared that Crown is a pioneer in crafting novel and thrilling luxury entertainment experiences for its patrons, mirroring MGM’s own approach. Both entities are dedicated to being trailblazers in their communities, through their commitment to corporate social responsibility endeavors and their contributions to boosting tourism and local economic growth.
Ho asserted that they share a similar fundamental essence in their business outlook. She further mentioned that she has personal acquaintances within the Crown management team and eagerly anticipates collaborating with them to further elevate Crown’s performance and development in Australia, as well as enhancing the allure of Crown properties for international clientele.
CPH Crown Holdings, also recognized as Consolidated Press Holdings, serves as the private investment vehicle of Australian tycoon James Packer. Should the transaction materialize, CPH and Packer will retain roughly a quarter of the remaining Crown shares, valued at approximately A$2.3 billion.
The agreement arrives just a few weeks after Las Vegas casino behemoth Wynn Resorts withdrew from negotiations to acquire Crown Resorts. Wynn initially announced its interest in acquiring the operator only a day before withdrawing from the discussions.
Wynn attributed the termination of the talks to the premature disclosure of preliminary discussions regarding a potential A$10 billion deal.