Australia’s Crown Resorts said on Tuesday it was in talks with Las Vegas rival Wynn Resorts about a potential $10 billion Australian dollars ($7.1 billion) buyout, sending Crown shares up more than a fifth.
The proposal has an implied value of $14.75 Australian dollars 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 $4.7 billion Australian dollars for the company’s former executive chairman, James Packer, who owns 47 percent of the company and quit the board in 2018 for personal reasons.
A spokesman for Consolidated Press Holdings, which holds Packer’s stake in Crown, was not immediately available for comment.