By Ben Blaschke
Melco Resorts & Entertainment Limited announced late Monday that its partnership with Crown Resorts had finally come to an end, with Crown set to sell down its remaining 11.2% stake within a week.
The deal, which includes the public offering of ordinary shares and concurrent repurchase from Crown Resorts is expected to be completed on May 15. As part of the deal, the previous joint venture arrangement between Crown Resorts and Melco International Development Limited – the majority shareholder in Melco Resorts – will be terminated and Crown representative Robert Rankin, will resign as a non-executive director of Melco.
The offering won’t dilute Melco International’s stake, which remains at 51.2%.
Melco Resorts Chairman and CEO Mr Lawrence Ho said, “It is with great pride that I look back over the past decade and recognize all that we have achieved in partnership with Crown Resorts at Melco.
“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. I would like to personally offer my sincere thanks to Mr James Packer (pictured) and Crown Resorts for being a great friend and partner for the past decade.
“Looking forward, I am extremely excited about the Company’s future. Our world-class and dynamic management team and innovative and market-leading integrated resorts place us in an exceptional position to continue our evolution into the leading premium-focused, integrated resort developer and operator in the World.
“Despite our positive history with Crown, I made the strategic decision to terminate the joint venture arrangement and allow Melco to pursue Japan alone. This highlights our confidence in, and commitment to, identifying and evaluating new markets which will drive long term shareholder value while contributing to the development of tourism and delivering other economic benefits for our host cities where we operate.
“This is highlighted by our decision to develop a world-class, tailor-made integrated resort in Manila, giving us exposure to the fastest growing gaming and entertainment market in the World. Our experience gives us strong confidence to enter new markets by working in concert with local partners.
“We look forward to delivering on our promise and commitment to our customers, partners, employees, local communities and shareholders as we deliver Innovating Excitement for a New Age.”
It was only 12 months ago that Crown Resorts first reduced its then 34.3% stake in Melco Resorts to 27.4% in a deal worth around US$800 million, before further selling down to 11.2% in December as Melco International became majority shareholder.
