Melco Resorts & Entertainment said on Friday Stanley Ho, former CEO and father of the company’s current CEO Lawrence Ho, has nothing to do with the company’s stock deal with Crown Resorts.
Earlier in May, Melco Resorts and Entertainment announced a deal with Billionaire James Packer, also the single largest shareholder in Crown Resorts, to purchase approximately 20 percent stake.
According to the deal, the payment for the shares has to be made in two equal installments – one by 6 June and the following by 30 September.
However, earlier this week, the New South Wales (NSW) Independent Liquor & Gaming Authority has confirmed that it would be investigating Melco’s purchase of Crown’s stakes.
The gambling regulator had given its nod for the casino in 2014 on condition that Crown would not do business with Stanley Ho who at the time was under investigation in Australia and the United States for possible ties to organized crime.
Melco said in an emailed statement to Reuters on Friday that Stanley Ho did not hold any position in the board of the company or any of its related entities, and is not involved in the company’s business operations.
“(Stanley Ho) does not exercise any influence on any financial and operating policies or other matters of these companies,” the Melco representative said.
The company in a statement also said that it would be cooperating with the authorities in their investigations.
Following the deal, in a report from Inside Asian Gaming, it was revealed that Melco Chief Lawrence Ho, got a nod from the Chinese and Macau Government before getting into the $1.22 billion Crown Resorts deal.
Crown Resorts is also facing investigation in fast track processing of Visas for Chinese high rollers visiting the gambling operators properties and alleged ties with Chinese mafias.