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CWNHB - Crown Resorts News Story

A$95.8 0.3  0.3%

Last Trade - 7:10am

Sector
Consumer Cyclicals
Size
Large Cap
Market Cap £3.47bn
Enterprise Value £3.59bn
Revenue £1.63bn
Position in Universe 80th / 1829

BUZZ-Blackstone may look to monetise Crown Resorts' property assets - Citi

Thu 30th April, 2020 3:28am
** Crown Resorts Ltd  CWN.AX  extend gains, a day after
Blackstone Group  BX.N  picked up Melco Resorts & Entertainment
Ltd  MLCO.O  9.99% stake in the casino operator  urn:newsml:reuters.com:*:nL3N2CH03I
    ** The private equity firm's move sent Crown Resorts' shares
up as much as 12.8%, before easing slightly to end Wednesday
nearly 11% higher
    ** Crown Resorts up 3.3% at A$9.85 on Thursday 
    ** Citigroup sees Blackstone to likely monetise Crown
Resorts' property value by separating it from the operating
business
    ** The broker likens the idea to what Blackstone did with
MGM Resorts International  MGM.N  in October last year where it
bought its Bellagio resort $4.25 billion  urn:newsml:reuters.com:*:nL3N2704AN
    ** Crown Resorts's property portfolio estimated to be worth
~A$5.6 bln($3.66 bln) - Citi 
    ** With lockdown forcing closures of casinos, Crown Resorts'
shares down more than 50% from its 2020 peak to the low it hit
in March 
    ** Since then, market volatility has eased, and Crown
Resorts has shored up its balance sheet, laid off 95% of its
staff either temporarily or permanently
    ** Citi says a demerger is a possibility with Crown Resorts
holding a minority stake in the spin-off
    ** PE interest reflects quality of Crown Resorts' assets and
balance sheet at a reasonable valuation - Citi 
    
($1 = 1.5291 Australian dollars)

 (Reporting by Nikhil Kurian Nainan)
 ((NikhilKurian.Nainan@thomsonreuters.com; Twitter:
@NikhilKurianN))
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