- It has been a busy few months for Crown Resorts (CWN), from Royal Commissions to takeover bids, but its share price history shows the beleaguered company is on the up
- It all started on February 9 when an NSW government inquiry declared that the gaming giant was unfit to hold its Sydney casino licence
- Victoria and WA followed suit and announced Royal Commissions, while CWN also noted various takeover, merger, and major stock acquisition offers
- The company is now pondering the Star Entertainment merge offer after rejecting Blackstone’s buyout proposal
- All in all, the CWN share price is up 34 per cent since the NSW Government deemed them unfit for operation just over three months ago
It has been a busy few months for Crown Resorts Limited (CWN), from Royal Commissions to takeover bids, but Crown’s share price history shows the beleaguered company is on the up.
It all started on February 9 when stocks were trading at $10.15. An NSW government inquiry then declared that the gaming giant was unfit to hold its Sydney casino licence. The following day its shares opened at $9.25 before rising to $9.81.
Since then, it has been a tumultuous few months for the gambling company.
Shortly after the announcement from the NSW government, three Crown directors resigned from their roles, with the companies’ shares reaching back into the plus $10 range, before closing at $9.89 on February 12.
Only a few days later on February 15, the Crown CEO and Managing Director Ken Braton stood down which pushed the share price just below $10.
On February 17 the WA government announced they were following NSW and ordered an inquiry into Crown Resorts and their Burswood operation.
The next day the company announced in their half-year results a loss of $121 million, with revenue falling 62 per cent over six months, which it attributed in part to COVID-19 restrictions. The casino and resorts business rounded the day with their share price at $9.73.
By this time, shares were back up to $10 as the WA gaming watchdog issued a directive to the Burswood operations to stop engaging in high-roller activities.
Despite all the controversy, the company’s share price was about to see a significant increase.
On March 22, Crown received an $8 billion payout offer from American-based Blackstone. This launched the share price from $9.86 to $11.97.
Since then the stock has continued a steady increase, as Oaktree Capital made a $3 billion offer to acquire James Packer’s interest on April 19.
This sent shares up to $12 as the stock continued to climb to $12.22 to round out the month of April.
Another significant bump to Crown’s share price was on the horizon, as Star Entertainment trumped Blackstone’s offer by putting a $12 billion merger on the table on May 10.
Crown Resorts share price increased from $12.12 to $13 off the back of the announcement.
The most recent tale in this saga came on Monday when Crown rejected Blackstone’s latest offer to acquire all of Crown’s shares at $12.35 each.
The company is now pondering the Star Entertainment offer as its shares hit $13.08 for the day of trading.
All in all, the CWN share price is up 34 per cent since the NSW Government deemed them unfit for operation just over three months ago.