Wynn Resorts Buyout Not Happening Anytime Soon
Wynn Macau that is what attracts Caesars to a possible deal getting into the worlds largest gambling hub
According to a report from brokerage firm Sanford C. Bernstein Ltd in Hong Kong Wynn Resorts are not about to be bought out following the departure of its founder Steve Wynn who stepped down following allegations of sexual impropriety.
The brokerage firm believes that many casino operators and investors would jump at the chance of acquiring Wynn Macau casino business but not the US side, but any potential sale would have to include the US business also says the brokerage company.
“We believe Wynn Resorts would not just sell Macau without the whole company being sold,” stated the report from analysts Vitaly Umansky, Zhen Gong and Cathy Huang.
Another hurdle for any suitor would be that any sizeable change in ownership would require the Macau Government approval and with all operators having their license renewals coming up between 2020 and 2022 any move to change or acquire controlling shares in Wynn Resorts could damage or affect those license renewals.
Finally the brokerage firm brought up the point of monetary value which at present Wynn Resorts shares mean that any acquisition would take at least $24.6 billion and that is without any premium to shareholders which would then mean somewhere in the region of $28 billion.
The report did mention Caesars Entertainment as a potential suitor who themselves have suffered in recent years because of their failures in the past to acquire a Macau Gaming License.
Whatever may happen to Wynn Resorts now their founder has left the business, it will take some time for any interested party to move for the company, so don’t expect a buyout in the next couple of years.
