Melco will purchase 19.99% of Crown Resorts at $13 a share in two equal tranches. The stock is being purchased from the Packer holding.
Credit Suisse suggests, perhaps, after regulatory approval, Melco may seek to purchase the remaining 27% stake held by Packer but that would trigger a full company offer, or require shareholder approval.
The broker maintains a Neutral rating and reduces the target to $14 from $15.
Sector: Consumer Services.
Target price is $14.00.Current Price is $12.32. Difference: $1.68 – (brackets indicate current price is over target). If CWN meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
