ups stake in casino operator Crown Resorts - 11th
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Packer, already the largest shareholder in Australian
casino operator Crown Resorts Ltd, has increased his
holding by 3 percentage points, the firm confirmed
in a filing to the Australian Securities Exchange
(ASX) on Wednesday.
ownership of ordinary shares increased by nearly 21.9
million units, to above 386 million shares, increasing
his voting rights to 53.01 percent from 50.01 percent
previously. The strike reference price per share for
the transaction was approximately AUD11.94 (US$8.43).
Packer (pictured) who stepped down in August
as chairman of the firm and is now an executive director
is according to Australian media making use
of ASX rules that allow investors to accumulate an
additional 3 percent in a company every six months.
strike price was at a slight premium to Tuesdays
market close of AUD11.66, but well below the 52-week
high of AUD16.12.
Resorts has seen its share price under some downward
pressure this year. A number of investment analysts
have attributed that to reduced earnings in Macau
from its Asian casino venture with Hong Kong-listed
Melco International Development Ltd.
November 5 that collaboration Melco Crown Entertainment
Ltd reported revenue of US$945.7 million for
the three months to September 30, down 16 percent
from the prior-year period. As of August, Crown Resorts
owned a 34.3-percent stake in Melco Crown.
note from Deutsche Bank Securities Inc indicated that
unofficial industry data from the first five days
of operation for the Melco Crown majority-owned Studio
City resort on Cotai in Macau which opened
on October 27 suggested the property was initially
underperforming the market relative to its government
allocation of new-to-market tables and relative to
the extra hotel rooms it was bringing to the local
a number of investment analysts have recently commented
on the level of leveraging at Crown Resorts.
Morgan Securities Australia Ltd referred in a note
late last month to the Crown Resorts balance
sheet as being full, and said a proposed
Las Vegas scheme from Crown Resorts would in likelihood
require AUD1 billion in equity from the company, while
new construction in Melbourne would require AUD500
million from the casino operator. JP Morgan added
that Crown Sydney at Barangaroo was a AUD2-billion
development, with all debt on the firms balance
October 29, Moodys Investor Service Inc said
the acquisition by Crown Resorts for US$100
million of a stake in international restaurant
and hotel company Nobu Hospitality LLC was credit
credit rating agency however said the deal would have
no immediate impact on the rating of Crown
Resorts. The Australian gaming operator has a Moodys
issuer rating of Baa2, with a stable outlook.