SBC News Voice of the Sports Betting Industry
Australian leisure and gambling tycoon James Packer has sold approximately 4.8% equity in ASX-listed casino operator Crown Resorts (Crown) for a reported AUS $448 million (£257 million).
The transaction was carried out by Packer’s investment vehicle Consolidated Press Holdings (CPH), who placed circa 35 million shares at AUS $12.80 apiece. The sell-off sees Packer relinquish his majority stake in Crown to 48.2%.
Releasing a market statement CPH governance stated that the sale was “conducted as part of CPH’s financing and capital management strategy”. The investment firm declared that it “remains deeply committed to Crown Resorts”.
Australian business news sources have reported that Packer will use the funds raised to pay down debt following a Packer Family asset settlement with his sister Gretel.
In 2016, Crown governance continues its corporate restructure, isolating the firm from its struggling Macau Melco Crown (MCE) division. Packer advisers are reported to want to implement a more ‘conservative’ strategy for Crown, focusing the casino operator on its home-based Melbourne and Perth properties.
The new strategy will see Crown demerger its home-based properties (including its online betting division) from its international portfolio. With the new Crown Resorts seeking an independent ASX listing.
Although still a major stakeholder in Crown Resorts business, James Packer has diminished his role within the company. In August 2015 Packer would step down as Crown Executive Chairman, being replaced by former Deutsche Bank executive Robert Rankin.
