Melco Resorts & Entertainment Ltd (MLCO) last week announced the conclusion of its joint venture partnership with Australian-listed Crown Resorts.
Melco announced it would be conducting a secondary sale of shares, as well as a concurrent repurchase of shares from Crown Resorts, which finalises the complete sell down of Crown’s stake. Prior to the transaction, Crown held 11.2 percent of Melco shares.
According to Melco’s official report, upon completion of this offering and repurchase, which occurred on May 15:
- Crown Resorts will no longer hold any shares in Melco;
- The shareholder arrangements between Melco International Development Limited (“Melco International”), our majority shareholder, and Crown Resorts Limited (“Crown”), including the joint venture arrangements for the Japan market, will terminate;
- Crown’s sole remaining nominee director, Mr Robert Rankin, will resign as a non-executive director of Melco.
- The offering will not have a dilutive effect on the Company’s shareholding and the shareholding of our majority shareholder, Melco International, will remain at 51.2%
Lawrence Ho, Melco Chairman and Chief Executive Officer said, “It is with great pride that I look back over the past decade and recognise all that we have achieved in partnership with Crown Resorts at Melco.
This transaction brings to a conclusion the world’s most successful global gaming partnership, highlighting our ability to work with partners in both good times and more challenging operating environments.
I would like to personally offer my sincere thanks to Mr James Packer and Crown Resorts for being a great friend and partner for the past decade.”
Sources agb.com, abc.net.au, smh.com.au, investsmart.com