Major Australian casino operator Crown Resorts Ltd. said in a Thursday filing to the Australian Securities Exchange that it would proceed with plans for demerging its international assets from its domestic ones.
It was in June when the major casino company revealed that it planned to split its investments into separate entities depending on their location. However, it was not until today that Crown Resorts confirmed that work on the projected demerger has already started.
The operator explained that it needs to gain all the necessary approvals, waivers, and consents from all involved parties in order to be able to complete the merger. Governments of the jurisdictions where Crown Resorts operates and local gambling regulators will also have to greenlight the process.
Along with the demerger, the operator also confirmed today that it will proceed with an IPO plan, hinted at in previous filings to the Australian Stock Exchange. The IPO will likely include the company’s hotel and casino complexes in Perth and Melbourne.
Crown Resorts is slated to hold its Annual General Meeting today in Perth, during which the operator is to present its shareholders with both the demerger and IPO plans.
Apart from its Crown Melbourne and Crown Perth properties, the hotel and casino company also manages a property in London, three properties in Macau, and an integrated resort in the Philippines capital, Manila. Crown Resorts is also set to build a multi-billion dollar complex in Barangaroo, Sydney, subject to regulatory approvals.
The gambling operator currently holds a 27% stake in Melco Crown Entertainment Ltd., its joint venture with Hong Kong-listed Melco International Development. The said entity actually operates the above-mentioned Macau and Philippines-based properties. Crown Resorts had previously had a 34.3% share in the Asian operator but announced that it would cut it back in May.
News spread earlier this week that 18 Crown staff members were detained in China in what many described as a crackdown on the promotion of offshore gambling activities within the country’s borders. The workers’ detention resulted in the company’s shares falling considerably. Crown Resorts’ Head of International VIP Gaming, Jason O’Connor, was also among those detained.
Casinos operated by the Australian gambling operator are to a great extent aimed at attracting VIP customers mainly from Mainland China.
