[ad_1]
Billionaire US businessman Tilman Fertitta is eyeing a possible full takeover of Wynn Resorts after it was revealed this week that he has acquired a 6.1% stake in the company, according to CBRE Equity Research analysts. there is.
Fertitta, who owns five casinos under the Golden Nugget brand, including American hospitality giant Laundry’s and the NBA’s Houston Rockets, as well as Las Vegas and Atlantic City, is Wynn’s second-highest after filing 13G with the Securities and Exchange Commission. Announced as a large individual shareholder. on monday.
His 6.1% stake was acquired on October 19, according to the disclosure, which is second only to Elaine Wynn’s 8.9% in terms of private ownership.
Fertita has not yet explained the reason for the acquisition or its future plans, but CBRE analysts John DeCree and Max Marsh said the nature of billionaires means they cannot sustain passive investments. I’m here.
“We look at his previous acquisitions, including McCormick & Schmick’s and Morton’s Restaurant Group, both of which began with 13G filings and culminated in full acquisitions,” they wrote.
“While Wynn is a more complicated undertaking, Landry’s story of going private from 2008 to 2010[where Fertitta acquired all outstanding shares]is a great example of Fertitta’s tenacity.”
Interestingly, Fertitta acquired a stake in Wynn on land acquired in June for $270 million, the same day it received approval from Nevada officials to develop a new casino resort on the Las Vegas Strip. That’s the fact. The resort will include his 43-story hotel with 2,420 rooms and other facilities.
Already planning to develop the Strip, why did the heavyweights play such an important role for Wynn? CBRE suggests that this opportunity was too good to be true.
“Fertitta looks poised for a future on the Strip, but the opportunity to play for Wynn was too tempting in a stock that is so out of step with U.S. fundamentals,” the analyst said. says.
“Potential buyers of Wynn have long struggled over how to deal with Macau, but with seven bidders for six concessions, they may have an opportunity to make a deal,” Fertitta said. It also previously reached an agreement to acquire a stake in Landry via SPAC, but canceled that transaction late last year.
Perhaps of the next play, DeCree and Marsh write: It’s hard to predict exactly how this will play out, but if Fertitta does take action, he’ll make a proxy battle less likely given the complexity of the Wynn board. It could be a perfect bid.
“At least one other smart investor recognizes Wynn’s underlying value and is confident in its favorable outlook for the stock.”
CBRE has set a price target of $100 on Wynn shares, which were trading at $63.90 at the time of writing.
[ad_2]
Source link
