Shares in Value Logo
Product Review Img Vertical

Date : 23/07/2021

Crown Shares down on ASX Following Updates From Star

Crown Resorts Ltd. operates in the gaming and entertainment industry, which focuses in the resorts, entertainment sectors in Australia and Macau. It operates through the following business segments: Crown Melbourne, Crown Perth, Crown Aspinall’s, and Wagering and Online. The Crown Melbourne segment includes casino, hotels, function rooms, restaurants and shopping and entertainment facilities. It also operates electronic gaming machines and table games. The Crown Perth segment includes hotels, a world-class convention centre, gaming options, food and beverage offerings, entertainment and tourism offerings. The Crown Aspinall’s segment includes casinos and gaming.

Why is Crown Share Price struggling on ASX today?

Today, CWN shares were on the decline once again. Crown shares going down and making headlines has become more of a theme these days with all the negative press that the company seems to be attracting. CWN shares declined by 2.24% to $10.02 a share today on the back of the Star announcing that they have withdrawn their merger offer. The Proposal outlined significant strategic and value accretion benefits for the shareholders of both companies, including estimated cost synergies of between $150 million to $200 million per annum and the potential to create significant value from a sale and leaseback (or similar structure) of the enlarged property portfolio.

However, the withdrawal probably makes sense if we put ourselves in the shoes of Star’s management team. Crown could lose its Melbourne casino license and these developments have material impacts. The Star noted that they remain focused on its growth initiatives including its world-class multi-billion dollar Queen’s Wharf Brisbane integrated resort due to open in late 2022 and its Gold Coast masterplan.

As for Crown, it’s an extremely rocky road ahead and CWN shares are expected to continue dropping next week.

Looking for best dividend stocks to invest on the ASX?

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for the Top 3 Dividend Stocks to buy in 2021! Click here now!

 

Are You Looking To Buy The Best Stocks In 2022?

Stay on top of upcoming market trends! Whether you are an SMSF investor or a young investor with your portfolio, we cover a wide range of stocks across all sectors, including mining, financials, industrials, real estate, technology, health and biotech, etc. It will give you an edge to invest and trade ASX listed stocks across large, mid and small caps with an advantage.

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2022!

 

Top 5 ASX Stocks
to Buy for Capital Growth in 2022

asx landing page
The hardest part to finding growth stocks is having an ability to understand the finer details of these companies from their valuations through to first mover advantage and having key factors on hand to make informed investment decisions.

Our experts take the guesswork out.

Download Your Free Report

By downloading this report you agree to the TERMS AND CONDITIONS and our PRIVACY POLICY

Scroll to Top

Login

By submitting this form, I agree to the TERMS AND CONDITIONS and PRIVATE POLICY

Please fill in your details to download the free report.