Packer in $1.35bn Melco Crown Entertainment sellout
- 9th May 2017
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Packer with Lawrence Ho, chief executive Melco Crown,
at the opening of Melcos Studio City resort
in Macau in 2015.
Packers Crown Resorts has reaped a further $US1
billion ($1.35bn) after selling its entire holding
in Asian gaming company Melco Crown Entertainment,
formally ending a 12-year partnership with Chinese
gaming tsar Lawrence Ho.
Hos Melco International Development last night
confirmed the purchase of Crown Resorts remaining
11.2 per cent stake in Melco Crown, which will deliver
Crown proceeds of $US987 million.
an update to the market this morning, Crown (CWN)
revealed that the proceeds of the sale will be used
to reduce debt. Crown also noted that its former chairman
Robert Rankin will resign as a non-executive director
of Melco Resorts.
is believe Crown took advantage of the share trading
window that followed Melco Crowns latest quarterly
results, which were released last week. It was the
first deal executed by Crowns new general counsel
and company secretary Mary Manos.
part of the sale, Crown has also severed its joint
venture arrangements with Melco Crown for the development
of new casino resorts in Japan, leaving both
parties to go it alone with future projects in a market
many believe could be the next gaming Mecca globally.
it is understood that pushing ahead with new developments
in Japan is currently not a No 1 priority for Crown
despite the Japanese government in December legalising
gambling. Legislation allowing the establishment of
new casinos is expected to pass parliament later this
our positive history with Crown, I made the strategic
decision to terminate the joint venture arrangement
and allow Melco to pursue Japan alone, Mr Ho
said last night.
sale of Crowns holding comes weeks after Mr
Packer sold his investment in Hollywood movie financing
business RatPac Entertainment as the billionaire strives
to make his private company debt free.