Melco Resorts and Entertainment has struck a deal with Billionaire James Packer to purchase approximately 20 percent stake in one of Australia’s biggest casino company Crown Resorts.
Melco sealed the $1.22 billion deal by purchasing 135.4 million Crown Resorts shares at a price of Aud A$13 (US$9) per share.
The payment for the shares has to be made in two equal installments – one by 6 June and the following by 30 September.
James Packer, a billionaire businessman who owns the majority stake in Crown Resorts, was planning to sell his stakes in the company after he distanced himself from the company’s Board of Directors in March 2018. Packer had mental health issues, and there could not continue with his responsibility as a member of the board.
While Melco has sealed the deal, Wynn Resorts was also looking to purchase Crown’s shares and was negotiating an agreement;however,, they pulled out after the agreement was leaked before it could be finalized.
With the deal, Melco now has around 50 percent of the shares James Parker had in the company.
Chairman and CEO of Melco Resorts & Entertainment, Lawrence Ho, said: “I view Melco’s investment in Crown as an incredible opportunity to purchase a strategic stake in what I believe to be Australia’s premier provider of true integrated resort experiences.”