Crown Resorts recently announced that it was selling various assets in order to raise capital. The Australian casino company is aiming to raise over AU$900 million, which will be used to pay off debt. The assets being sold included land, shares in other casino companies, and a penthouse. Thankfully, the news of the sale has gone over well, and the company saw its share price increase following the news.
Crown Resort Selling Numerous Assets
The list of assets being sold by Crown Resorts is quite extensive. The group decided to sell a 34.6-acre piece of land in Las Vegas to Wynn Resorts for AU$390 million. Crown Resorts had planned to build a casino resort on the land but cancelled the plans in 2016. In addition to this, it has decided to sell its 4.2 million shares in Caesars Entertainment. These shares were worth around AU$70 million.
Crown Resorts also sold off a luxury wine estate for AU$81 million, and is considering selling its 62% stake in CrownBet. This would be worth nearly AU$200 million. Finally, the founder and largest individual shareholder, James Packer, bought the top two floors of the Crown Sydney Residences at the Crown Sydney Hotel Resort. He paid around AU$80 million for the floors, even though the project is still under construction.
Things Looking Up for Crown Resorts
As we all know, the last year or so has not been great for Crown Resorts. The company was involved in a scandal in China after 18 employees were arrested for marketing gambling illegally. In addition to this, several ex-employees have come forward and claimed that the Melbourne casino has tampered with slot machines to improve the house edge.
The good news is that Crown Resorts has decided to focus on the Aussie market and investors and shareholders are pleased with this news. In addition, the announcement of the asset sales to pay off debt went down well. After the news broke, Crow Resorts saw its share price climb by 3.2% before trading closed on Friday.