This article is from the Australian Property Journal archive
US private equity firm Blackstone has taken a 10% stake in Crown Resorts from Macau-based Melco for $551 million, marking an end to the association between the two gaming groups that had already been stifled by a government inquiry and the coronavirus outbreak.
Blackstone’s acquisition of the 9.99% holding is at a heavily discounted price. The initial deal struck in May would see Packer sell 19.99% in Crown – representing almost half his interest – to Melco for $1.76 billion through his private investment company Consolidated Press Holdings.
Melco, overseen by billionaire Lawrence Ho, was to acquire the stake in two tranches and was also chasing a seat on the Crown board. After the first tranche was exchanged last year, the deal was put on hold when the Bergin inquiry was announced in response to allegations of money laundering and organised crime activity at Crown’s casinos, and to consider if the deal breached the terms of Crown’s casino licence in Sydney.
In February, Melco announced it had pulled out of the planned $880 million acquisition of the balance of shares. A majority of its casinos are in Macau, which had by then all of its venues closed by the Macau special administrative region in the earlier stages of the coronavirus outbreak.
Crown’s own operations have taken a massive hit due to social distancing and tourism measures. Its share price has tumbled by about 28% since the second half of the deal was canned.
