Operator News
Australia – Melco buys 19.99 per cent of Crown Resorts
By Phil - 30 May 2019
Melco Resorts & Entertainment has bought a 19.99 per cent share in its former Macau partner and Australian casino operator Crown Resorts.
The deal will see Melco will acquire 135.35m shares of Crown for a price of AUD13.00 per Crown share.
Lawrence Ho, Chairman and Chief Executive Officer of Melco Resorts & Entertainment, said: “I view Melco’s investment in Crown as an incredible opportunity to purchase a strategic stake in what I believe to be Australia’s premier provider of true integrated resort experiences.
“Crown’s Resorts in Perth and Melbourne are world class entertainment destinations and I believe that Crown Sydney, much like Melco’s Morpheus property, will create an architectural icon for the city, the country and the world. In addition, Crown’s UK assets have qualities that are second to none,” he added. “Like Melco, Crown is a leader in creating new and exciting luxury and entertainment experiences for its guests. We also both strive to be a leader in the communities in which we do business both through CSR work and helping to drive tourism and the local economy. Put simply, we share a similar core DNA with respect to how we view our businesses. In addition, I personally know the management at Crown and look forward to working with them to further enhance both Crown’s performance and development in Australia and the appeal of Crown’s properties to international patrons.”
The shares have come from Australian billionaire James Packer who quit his position on the board of Crown last year.
Mr. Packer said: “I am thrilled Lawrence Ho and Melco have chosen to invest in Crown. My continuing Crown shareholding represents my single largest investment. I am still vitally interested in Crown’s success as a world class resort and gaming business. Over the last 15 years Lawrence has built one of the world’s leading resort and gaming companies.”
While the announced transaction does not require regulatory approval to be consummated, Melco, its Chairman and Chief Executive Officer, Lawrence Ho, and select Melco executives will promptly submit applications to the gaming regulatory authorities in each of Victoria, Western Australia, New South Wales and any other relevant jurisdictions. Following approval from these authorities, Melco intends to pursue board representation on Crown’s board of directors commensurate with its ownership position. Additionally, subject to obtaining requisite regulatory approvals, Melco welcomes the opportunity to increase its ownership in Crown.
