Melco acquires stake in Crown Resorts

The shares represent an ownership interest of approximately 19.99% in Crown. Credits: bloomberg.com
The shares represent an ownership interest of approximately 19.99% in Crown. Credits: bloomberg.com

The casino company Melco Resorts acquired a 19.9% stake in Crown Resorts from CPH Crown Holdings for €1 billion.

Australia.- Melco Resorts & Entertainment announced on Thursday that it reached a purchase agreement that specifies that one of its subsidiaries will acquire 135.35 million shares of Crown Resorts Limited from CPH Crown Holdings Pty Limited (CPH) for a price of €8 per Crown share.

As detailed by the company, the shares represent an ownership interest of approximately 19.99% in Crown. The transaction will close in two equal tranches on June 6, 2019 and on or prior to September 30, 2019.

This deal doesn’t actually require regulatory approval to be completed. However, the company, its Chairman and CEO Lawrence Ho and selected executives said that they will submit applications to the gaming regulatory authorities in Victoria, Western Australia, New South Wales and any other relevant jurisdictions.

Lawrence Ho 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.

“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.”

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