• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Nomura ‘seriously doubts’ MGM-Caesars tie-up on cards

Nov 06, 2018 Newsdesk Latest News, Top of the deck, World  


Nomura ‘seriously doubts’ MGM-Caesars tie-up on cards

The stockbroking arm of Japanese financial institution Nomura has played down a New York Post story that said MGM Resorts International was interested in merging with fellow U.S.-based casino operator Caesars Entertainment Corp, and had hired bank group Morgan Stanley to study whether it was feasible.

A Nomura note on Monday said: “We seriously doubt that, even if there are such discussions, they will go anywhere.”

MGM Resorts has a presence in the Macau casino market via a majority stake in MGM China Holdings Ltd. The Caesars brand has long coveted a presence in Asia in order to make money from the region’s avid gamblers: it is currently planning a foreigner-only casino in South Korea which might open in 2021.

MGM Resorts and Caesars Entertainment are already competing for consumer dollars in the increasingly-crowded – in terms of venues – U.S. market. The Caesars group is seeking a Japan casino licence, as is MGM Resorts, although the latter has said publicly it would prefer a majority stake if possible.

The rival groups have each spun off a real estate investment trust (REIT) to manage and produce fresh yield from the large amounts of infrastructure they respectively have created in the U.S. In January it emerged that Caesars’ REIT had rejected a takeover proposal from MGM Resorts’ REIT, MGM Growth Properties LLC.

The New York Post reported on Monday that MGM Resorts had hired Morgan Stanley and lawyers Weil, Gotshal and Manges to start studying the idea of a tie-up with Caesars Entertainment. The newspaper, citing unidentified sources “close to the situation”, said there was no offer on the table.

The report quoted its sources as saying activist hedge funds, which together owned about a 25-percent portion of underperforming Caesars Entertainment, had been pushing for an MGM Resorts deal.

MGM and Caesars Entertainment declined to comment, the New York Post said. Neither the stock of MGM Resorts – listed on the main New York Exchange – nor the shares of Caesars Entertainment, listed on Nasdaq, received any boost from the newspaper report. MGM Resorts fell 1.95 percent by Monday’s close, while Caesars Entertainment was down 0.31 percent.

The New York Post said that, failing any bid from MGM Resorts, then either U.S.-based Wynn Resorts Ltd – parent of Macau operator Wynn Macau Ltd – or Genting Bhd of Malaysia – parent of casino operators Genting Singapore Ltd, Genting Malaysia Bhd and Genting Hong Kong Ltd – might be interested in buying Caesars Entertainment.

The Nomura note commented: “We also find it a dubious proposition that either Wynn Resorts or Genting is in a position to acquire Caesars Entertainment.

“We reiterate our positive view on Caesars Entertainment, which is based not on a takeover premium but on improving operational performance with a new CEO, as well as stronger demand trends in Vegas next year.”

Last week it was announced that Caesars Entertainment’s current chief executive, Mark Frissora, would leave his post in February, after a tenure that included seeing the group through a lengthy bankruptcy reorganisation, completed last year.


  • tweet
Related articles
  • Genting Malaysia 4Q EBITDA halved sequentially
    Genting Malaysia 4Q EBITDA halved...

    Feb 26, 2021  

  • Phase 2 Resorts World Sentosa only starts 2022: analyst
    Phase 2 Resorts World Sentosa only...

    Feb 24, 2021  

More news
  • Suncity to open clubs at Londoner Macao, Lisboa Palace
    Suncity to open clubs at Londoner...

    Feb 26, 2021  

  • Tech supplier Crane ups forecast for 2021 core sales
    Tech supplier Crane ups forecast for...

    Feb 26, 2021  


Latest News

Suncity to open clubs at Londoner Macao, Lisboa Palace

Suncity to open clubs at Londoner Macao, Lisboa Palace

Feb 26, 2021  

Macau junket investor Suncity Group has confirmed to GGRAsia on Friday that it was preparing the launch of new VIP gaming clubs at two separate Cotai casino resorts, respectively the Londoner...
Read More
Tech supplier Crane ups forecast for 2021 core sales

Tech supplier Crane ups forecast for 2021 core sales

Feb 26, 2021  

Border casino op Donaco posts positive EBITDA for Jul-Dec

Border casino op Donaco posts positive EBITDA for

Feb 26, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day


US$53.4 million

Adjusted EBITDA reported by Asian casino operator Melco Resorts and Entertainment for the fourth quarter of 2020



Most Popular

  • Macau casino GGR soared in final days of CNY: brokeragesMacau casino GGR soared in final days of CNY: brokerages February 23, 2021
  • Pansy Ho sells off more stock in MGM Resorts for US$36mlnPansy Ho sells off more stock in MGM Resorts for US$36mln February 23, 2021
  • Macau removes last mainland cities from its quarantine listMacau removes last mainland cities from its quarantine list February 23, 2021
  • GEG in US$1.6bln construction deal on Galaxy Macau Phase 4GEG in US$1.6bln construction deal on Galaxy Macau Phase 4 February 22, 2021
  • Caesars out of Korea, ex-partner R&F asks 3yr delayCaesars out of Korea, ex-partner R&F asks 3yr delay February 19, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us