Billionaire James Packer sold a A$448 million (S$459.8 million) stake in Crown Resorts Ltd, reducing his ownership of the Australian casino operator to less than 50 per cent.
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Packer’s privately held investment vehicle, Consolidated Press Holdings Pty, agreed to sell 35 million shares – about 4.8 percent of Crown – at A$12.80 apiece, it said in a letter to Crown that was released to the stock exchange Monday.
Aug 29 The billionaire owner of Australia’s Crown Resorts Ltd has trimmed his stake to less than half, the latest step in cutting down his involvement in the country’s top casino company. Consolidated Press Holdings remains supportive of the recent announcement of initiatives to increase the shareholder value by Crown Resorts with the new dividend policy, the proposed demerger and the continued evaluation of a potential REIT. The company now owns a 27.4% stake in Melco Crown, compared to a 34.3% one prior to the sale.
The shares fell 1.7 per cent to A$13.29 at 10.42am in Sydney trading.
After reaching a settlement with his sister Gretel, James Packer has made a decision to pay the debt owned via the agreement by giving up the majority of control within Crown Resorts. He quit as chairman in August 2015 and as a director in December. Consolidated Press Holdings will still be the majority shareholder of Crown Resorts but on a smaller scale, of 48.2%.
The sale comes as Crown mulls a demerger of its Australian and worldwide assets, as well as a potential float most of its Australian hotels via a property trust.
Reportedly, after a settlement was eventually reached earlier this year, Mr. Packer was left with a A$1.25-billion debt to be paid down.
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