James Packer Denies Meeting With Sheldon Adelson
James Packer denied any meeting with American billionaire Sheldon Adelson but that didn’t stop Crown Resorts’ share price soaring.
Crown Resorts shares jumped almost 3% this week to close at $9.90. Those same shares haven’t been at those heights since mid-2020. What caused the increase? Two multi-million dollar yachts parked alongside each other in the French Caribbean.
Both Packer and Adelson own enormous superyachts like many fellow billionaires do. They are difficult not to notice due to their sheer size. Packer loves spending time aboard his 108-meter yacht, which he spent more than $200 million on.
Reporters spotted Packer’s yacht in the French Caribbean as 2020 drew to a close. Another massive yacht was parked alongside it. Onlookers saw tenders between both vessels going back and forth between Packer’s yacht and the other.
All boats are named and the previously unknown vessel bore the name “Queen Miri.” It has since come to light this is Adelson’s boat and is named after his wife of 30-years.
Speculation that Adelson and Packer discussed the potential sale of Packer’s 37% holding in Crown Resorts is rife. Packer, of course, denied any talks took place. He claimed the two casino billionaires had any contact at all. You know what they say though: there’s no smoke without fire.
Adleson Is Interested In Buying Crown Resorts
Two billionaires parked next to each other would not normally garner interest but was this really a chance meeting. Mega rich people move in similar circles, sure, but everything points to this pairing talking business.
Adelson has made no secret in declaring his interest in purchasing Crown Resorts. Adelson spoke on a conference call in May 2020 where he discussed Las vegas Sands’ financial figures.
The man worth US29.8 billion declared his interest in future mergers and acquisition. He bragged about Las Vegas Sands’ strong balance sheet. Reports in the United States suggested Okada Manila, Wynn Resorts Macau and Crown Resorts are on Adelson’s radar.
The self-made multi-billionaire hinted he’s prepared to leave Las Vegas. Could a move to Australia be on the cards?
Experts say a Wynn Resorts Macau takeover makes the most sense, although that was before the recent inquiry into Packer and his Crown cronies.
Packer Wants Out of Crown; Adelson Can Easily Afford Packer’s Holding
Packer wants out of Crown Resorts and everyone knows this. It’s Packer’s desperation to leave the casino world behind that resulted in Crown being dragged through the courts. It’s also one of the main reasons it has a $2 billion hotel with no casino licence.
The ongoing inquiry has not shown Packer in a good light. Not even remotely good. He underwent intense questioning about insider trading and dodgy, at best, practices. The use of casino junkets came to light also.
The inquiry heard Packer is at the forefront of everything negative happening at Crown. It is deemed Crown isn’t suitable to hold a casino licence, which prompted the Independent Liquor & Gaming Association (ILGA) not issuing a licence for Crown’s $2 billion development in Barangaroo.
It seems likely the ILGA will demand sweeping changes to Crown’s senior management team, essentially forcing Packer’s arm.
Cost is not an issue to Adelson and Packer, who is worth almost $5 billion, isn’t strapped for cash. Both are shrewd businessmen, however, and plenty of bartering is required to strike any deal.
Adelson isn’t the type of man who answers to anyone so buying Packer’s shares will just be the start. A full takeover, or at least a controlling stake, would be on the cards. Crown has a market capitalisation of $6.62 billion so Adelson could easily afford to buy every share. He could afford to buy Crown several times over!