Melco delays Crown stake purchase

Melco announced it put its Crown stake purchase on hold as it awaits for the Australian authorities to complete an inquiry on the deal.

Australia.- Melco Resorts announced the purchase of a stake in Crown Resorts and divided it into different stages. After completing the first, the company announced it has delayed the second part of the transaction.

“On August 8, 2019, the New South Wales Independent Liquor & Gaming Authority announced that it was conducting an inquiry into the Transaction and other matters relating to Crown,” Melco noted. That’s the reason it has decided to put on hold the second stage. It is “to allow more time for the relevant Australian regulatory processes to be completed.”

Melco still has to complete the acquisition of the remaining 67,675,000 shares of Crown.

The investigation

The chief of the Australian Criminal Intelligence Commission, Michael Phelan, told The Age and Sydney Morning Herald about the investigations. He said that investigators and federal police and intelligence agencies have uncovered damning “insights into vulnerabilities ... within Australian casinos.”

The Targeting Criminal Wealth special investigation looks into the operation of junkets who are responsible for bringing high roller clients into casinos. Mr Phelan didn’t reveal which operators are under investigation, but Crown recently highlighted its own measures. They said they have “a comprehensive anti-money laundering and counter-terrorism financing program” and “robust process” for vetting junket operators.

“Much was sought to be made… of the conduct of ‘Crown’s junket operators’. In fact, the junkets are not Crown’s,” Crown stated.  “They are independent operators who arrange for their customers to visit many casinos globally. Crown deals with junkets and their customers in essentially the same way as other international casinos.”