Melco Resorts Abandon Crown Resorts Purchase Amid Coronavirus Crisis

Melco Resorts Abandon Crown Resorts Purchase Amid Coronavirus Crisis

Australia – It has been announced today by Melco Resorts & Entertainment Ltd that it has abandoned plans to purchase its proposed stake in Crown Resorts Ltd and its plans for a Crown Resorts board seat.

The announcement is said to come amid the coronavirus crisis, which has forced the casino developer, owner and operator to ‘reassess its non-core investments’.

Melco Resorts & Entertainment Ltd, which already owns almost 10% in Crown Resorts, was reportedly looking to purchase James Packer’s 20% stake for a sum in the region of one billion dollars.

The deal has made headlines in the past few weeks due to its controversial nature involving Hong Kong-born Canadian businessman Lawrence Ho.

According to a document released earlier today, both Melco Resorts & Entertainment Ltd and Crown Resorts Ltd had discussed terminating the share sale agreement in a meeting.

The breakdown of the deal is said to be related to the coronavirus outbreak rather than the controversial stake sale.

Helen Coonan, Non-Executive Director of Crown Resorts Ltd commented:

“We’ve taken a number of practical measures, including engagement of an anti-money laundering expert. Most recently, we’ve appointed Nick Caldas, who is one of the nation’s most distinguished police officers, to review our anti-money laundering and counterterrorism financing compliance processes.”

Coonan added details about James Packer, who is at the centre of the purchase:

“I met Mr Packer when he came back to have a look at the property and I thought he looked very well. He certainly was his usual incisive self, so I think you could say he’s in a much better place than perhaps he has been in the past.”

Reportedly, Melco Resorts is planning to focus its efforts and investments in Macau, Cyprus, the Philippines and Japan.

Leave a Reply

Your email address will not be published. Required fields are marked *