The Australian-based Crown Resorts announced that the company and Melco have finally parted ways.
Australia,- Australian operator Crown Resorts announced on Tuesday night that the company has completed the disposal of the remaining stake in Melco Resorts, meaning that the partnership between them is finally over.
During a filling to the Australian Securities Exchange on Tuesday the company said that “Crown Resorts no longer holds an interest in Melco Resorts.” As revealed by GGRAsia, the disposal of the remaining shares would bring net proceeds of nearly a billion dollars to Crown Resorts, and the company would direct that money to pay and reduce existing debts. Melco announced earlier this month that it would be conducting a secondary sale of shares, as well as a concurrent repurchase of shares from Crown Resorts (according to Bernstein they represent around 11.2 of the MLCO’s total) which is expected to occur on May 15.
Melco’s chairman and CEO Lawrence Ho had said: “This transaction brings to conclusion the world’s most successful global gaming partnership, highlighting our ability to work with partners in both good times and more challenging operating environments.”
Moreover, experts also commented on the split and said that the dissolution could change the upcoming businesses in the Chinese casino zone. “The timing of the Melco Resorts exit is not ideal after earnings upgrades [of the latter firm],” said JP Morgan Securities Australia Ltd.