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Melco buys 19.99 pct stake in Crown

Melco Resorts& Entertainment Limited announced that it bought a 19.99 percent stake in Crown Resorts Limited from CPH Crown Holdings Pty Limited.

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UPDATED: 22 Dec 2023, 5:44 am

Melco Resorts& Entertainment Limited announced that it bought Thursday a 19.99 percent stake in Crown Resorts Limited from CPH Crown Holdings Pty Limited.

According to a statement by the Macau gaming operator, it executed a definitive purchase agreement through which a subsidiary of Melco will acquire 135.35 million Crown shares from CPH for a price of A$13.00 (72.70 patacas) per Crown share.

The statement said that these shares represent an ownership interest of about 19.99 percent in Crown. The statement also said that the transaction will close in two equal tranches next Thursday and on or before September 30 this year.

The statement also said that Melco intends to pursue board representation on Crown’s board of directors commensurate with its ownership position, following approval from the gaming regulatory authorities in Victoria, Western Australia, New South Wales “and any other relevant jurisdictions”.

According to the statement, “additionally, subject to obtaining requisite regulatory approvals, Melco welcomes the opportunity to increase its ownership in Crown”.

The statement quoted Melco Chairman and CEO Lawrence Ho Yau-lung as saying: “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.”

According to Reuters last night, the purchase price amounted to A$1.76 billion (US$1.22 billion). The deal came after Wynn Resorts in early April withdrew an offer to buy Crown.

Melco’s move comes as it vies for a casino licence in Japan.(Macaunews)

UPDATED: 22 Dec 2023, 5:44 am

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