Australian gambling and leisure tycoon James Packer has sold an $800 million (£550 million) stake in joint venture Melco Crown Entertainment (MCE).
Business news sources report that Packer and his advisors are seeking to limit Crown Resorts’ exposure in the declining Macau casino market. As part of a more conservative strategy Crown Resorts will focus its growth on Australian casino developments, with Packer wanting to temporarily shelve international projects.
Committing to a share repurchase scheme with venture partner Melco International (majority shareholder Lawrence Ho), Crown Resorts will cut its stake in MCE from 34.3% to 27.4%.
The transaction, will also see Crown Resorts representation on MCE board limited to two board members. Once completed, James Packer will no longer hold his position Co-Chairman of MCE, but will remain as an advisor to the Asian gambling operator.
The news of Crown Resorts MCE share offload, follows last August’s announcement that Packer had stepped down as Executive Chairman of the company, with Deutsche Bank executive Robert Rankin taking over the leadership position.
At the time Packer and Crown Resorts governance noted that the company would undertake its largest executive shake-up as the operator looked to regain its position following a 41% decline in profits to $385 million.
Source: SBC News
You must be logged in to post a comment.