Shares in Crown Resorts have sky rocketed today on news that James Packer, Australia’s third-richest man, is in talks to return some of his casino assets back to private ownership. CWN shares are currently up 14% on the day. ATM had highlighted in its previous update that shares were significantly undervalued and looked to be an attractive opportunity. ATM still believes the share price has further to run on current valuations and therefore maintains its buy rating.
Over the past month Mr Packer has been accumulating socks in the open market, increasing his share holdings by 3% to take his total holdings to 53.1%. ATM believed that Mr Packer was sending a clear signal that he thought the current share price significantly undervalued the company.
Packer’s Consolidated Press Holdings Pty has been speaking with private equity firms and pension funds about a possible joint bid for some assets of his publicly traded Crown Resorts Ltd.
A deal hasn’t been finalized, and...
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