Business tycoon James Packer sold a A$448-million stake in Australian casino operator Crown Resorts Ltd., thus reducing his interest in the company to 48.2%, local media reported earlier today.
Consolidated Press Holdings Pty, known to be the billionaire businessman’s privately held investment entity, engaged in the sale of 35 million shares or about 4.8% of Crown Resorts’ issued share capital through financial services company UBS. The Australian Securities Exchange was informed about the latest happenings via a statement from earlier today. The shares were sold to institutional investors.
The announcement comes several months after the major Australian casino operator announced plans to demerge international assets from its domestic ones. Under the proposed plan, Melco Crown Entertainment Ltd., Crown Resorts’ Macau-based joint venture with Hong Kong group Melco International Development, as well as several other international entities will be managed by one company, while its Australian casino venues will be managed by another.
Catherine Davies, legal counsel of Consolidated Press Holdings, wrote in a letter to Crown Resorts that the latest sale was part of the company’s “financing and capital management strategy” and that it will remain committed to the major casino operator and truly excited about what the future bodes for it.
According to Australian media, the sale was necessitated by a debt Mr. Packer had to deal with after reaching a settlement with his sister, Gretel Packer, over the Packer family’s asset portfolio. Last October, the two siblings negotiated their original deal but another one was reached in February 2016. In fact, Consolidated Press Holdings was established as an investment vehicle by James and Gretel Packer’s late father – Kerry Packer, more than 50 years ago.
Reportedly, after a settlement was eventually reached earlier this year, Mr. Packer was left with a A$1.25-billion debt to be paid down.
Over the past year, the billionaire has gradually reduced his influence in Crown Resorts. Last August, he announced that he would resign from his post as Chairman of the company. Towards the end of 2015, he also left his Director role.
Earlier this year, Mr. Packer stepped down as Co-Chairman of Melco Crown. In addition, Crown Resorts sold its interest in the Macau-based casino developer and operator. The company now owns a 27.4% stake in Melco Crown, compared to a 34.3% one prior to the sale.
