A unit of Melco will buy 135.5 million shares, the company said in a filing to the U.S. Securities and Exchange Commission. Melco also said that subject to regulatory approval, it would “welcome the opportunity to increase its ownership,” suggesting it may further increase its stake. James Packer was reportedly the seller of the stake, offloading about half of his holdings.
The transaction will close in two tranches on June 6 and September 30. Once it gains approval, Melco will seek positions on Crown’s board.
“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,” Ho said.
The Australian operator has been widely viewed as a potential acquisition target since it disclosed in April that it had been in takeover talks with Wynn Resorts. Those negotiations fell through after Crown revealed the discussions prematurely.
Crown sold its remaining shares in the Melco Crown joint venture in May 2017, a year after it began selling down its stake. The move was part of a general pullback from international expansion plans and followed the arrest of staff members in China.
Source: GMB / AG Brief
