Sectors: Casino
SGR has experienced an awful year which has led to the $1.6bn casino operator being forced to raise $800mn at $1.20 per share but we shouldn’t forget that Blackstone took over Crown Resorts (CWN) when it was also struggling. This stock comes with enormous political risks/baggage but there is the logic for a well-respected casino operator who wants a footprint in Australia to consider SGR, alternatively, they could take a decent stake in the business and wait to see what plays out on the regulatory front.
CWN +2.02%: On its 4th attempt, Blackstone looks to have gotten over the line on its takeover for Crown at $13.10, having lodged the first offer at $11.65. The deal is still subject to regulatory approval hence the prevailing discount to the bid price however there is a high probability the deal will complete. We have little doubt this will prove to be a good buy for…
CWN +8.77%: the casino operator received an improved bid from US Private Equity group Blackstone today, a ~5% improvement on the initial offer back in November. The new bid comes after months of discussions and a peak behind the curtains of Crown but still remains conditional on further due diligence and the usual caveats of regulatory approvals. The Crown…
(+20%): The much maligned casino operator was best of ground today after their 2nd largest shareholder, Blackstone Group launched an $8 billion takeover bid at $11.85 per share.
CWN is arguably my favourite in todays small list as we have a perfect combination of a keen seller (Jamie Packer 36.8%), a busines that probably needs fresh / changed ownership structure to solidify its casino licence in Sydney and the share price is depressed courtesy of COVID. The embattled casino operator has already seen private equity group Blackstone buy 10% of its shares last year, I have no doubt they will be looking to add value to this stake in some manner whether through its property holdings or orchestrating a sell out by Packer.
Crown Resorts (CWN) operates and manages gaming and entertainment facilities, bars, restaurants, nightclubs, cinemas and retail outlets. The Company also develops hotels and conference centres facilities. It’s primary operation is in Melbourne however it with soon open a new casino in Sydney
