Melco Resorts & Entertainment Ltd (MLCO) on Monday announced the conclusion of its joint venture partnership with Australia-listed Crown Resorts.
In a Monday press release, Melco announced it would be conducting a secondary sale of shares, as well as a concurrent repurchase of shares from Crown Resorts, which finalizes the complete sell down of Crown's stake.
“Upon completion of this offering and repurchase, which is expected to occur on May 15, 2017, Crown Resorts will no longer hold any shares in Melco,” said the company in a press release on Monday.
According to Bernstein, prior to the transaction, Crown held 11.2 percent of MLCO shares.
“The transaction announced this morning finalizes the complete sell down of Crown's stake (sale of shares via a secondary offering and settlement of equity swap arrangements).”
According to the company press release, the move also nullifies any shareholder arrangements between Melco International Development Ltd and Crown Resorts Ltd, including the joint venture arrangements for the Japan market.
Crown’s sole remaining nominee director, Mr. Robert Rankin, will resign as a non-executive director of Melco.
“This transaction brings to 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,” said Mr. Lawrence Ho, Melco chairman and CEO.
“Despite our positive history with Crown, I made the strategic decision to terminate the joint venture arrangement and allow Melco to pursue Japan alone. This highlights our confidence in, and commitment to, identifying and evaluating new markets which will drive long term shareholder value while contributing to the development of tourism and delivering other economic benefits for our host cities where we operate,” he noted.
“While Crown is exiting its remaining position in Melco, I feel even more confident today of Melco’s prospects than I did a year ago... I firmly believe that Macau remains the best gaming market in the World and a great place to invest,” he concluded.
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