MGM Resorts Acquires Stake in Crown Resorts

A top-tier Asian gaming firm, MGM Resorts International, has reached an agreement to acquire a nearly 20% interest in Crown Resorts, an Australian gaming operator, for a price tag of A$1.76 billion.

MGM will acquire 135.35 million shares from CPH Crown Holdings, paying A$13.00 per share, resulting in a total transaction value of approximately A$1.76 billion.

The deal is slated for completion in two phases, with the first closing on June 6 and the second on September 30.

MGM will require approval from gaming authorities in Victoria, Western Australia, New South Wales, and other jurisdictions.

Upon receiving the necessary approvals, MGM intends to seek a seat on the Crown board. MGM may also explore the possibility of acquiring additional shares in Crown Resorts if the initial transaction proves successful.

MGMs head honcho, Pansy Ho, stated: “Both MGM and Crown are top dogs in crafting fresh and thrilling luxury entertainment experiences for their patrons. We also share a dedication to being leaders in our communities, achieving this through corporate social responsibility initiatives and boosting tourism and local economic growth.

“In a nutshell, we share a similar core essence in how we perceive our business.

“Moreover, I have personal acquaintance with the Crown management team and eagerly anticipate collaborating with them to further improve Crown’s performance and expansion in Australia, as well as the allure of Crown properties for global clientele.”

CPH Crown Holdings, also known as Consolidated Press Holdings, is the private investment vehicle of Australian tycoon James Packer. If the transaction goes through, CPH and Packer will retain about a quarter of the remaining shares in Crown, valued at approximately A$2.3 billion.

The agreement comes just days after Las Vegas casino behemoth Wynn Resorts declared it was withdrawing from acquisition discussions after announcing its intention to acquire Crown Resorts.

Wynn stated that preliminary discussions about the potential A$10 billion deal were prematurely revealed, leading to the decision to terminate the talks.

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