Crown quits Macau
the detention last year of 15 employees by Chinese authorities.
Crown expects to complete the deal with Melco Resorts and Entertainment by Monday and will use the proceeds to reduce debt.
Its pullback from Asia’s biggest gambling market started a year ago but accelerated after Chinese authorities detained 15 employees in October amid a crackdown on the gambling marketing and outflows of money from the Chinese mainland.
Melco Resorts chief Lawrence Ho said the sale of Crown’s remaining stake in the joint venture concluded the world’s most successful global gaming partnership.
Their joint venture was previously called Melco Crown Entertainment but renamed last month. An agreement between Crown and Melco Resorts relating to the Japanese market will also be terminated.
Aside from casinos and hotels in Macau, Melco Resorts operates a casino in Manila, in the Philippines.
Crown said in February that it intended to focus on its casinos and hotels in Melbourne and Perth, the luxury casino-hotel development at Sydney’s Barangaroo, development of the Queensbridge hotel tower in Melbourne, and its digital business.
The arrests of the Crown employees triggered caution in the high-stakes gambling market in China, hurting the flow of wealthy high-rollers to casinos in Macau and Australia.
Crown has since dumped plans to spin its international assets into a separate company, sold its interests in Macau, dropped plans to build a casino in Las Vegas, replaced Robert Rankin as chairman, and reappointed Mr Packer – who holds a 48.2 per cent stake – to its board.
Yesterday, Crown said that as a consequence of its exit from Melco Resorts, it would no longer be entitled to a seat on the board. Mr Rankin, who is still a director on Crown’s board, would resign as a director of the Melco Resorts board, the group said.
Shares in Crown closed 21¢ higher yesterday at $12.71.