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Crown Resorts Sells $800M Stake in Melco Crown Entertainment

Crown Resorts Sells $800M Stake in Melco Crown Entertainment

Crown Resorts, the casino group controlled by James Packer, has sold an $800 million stake in Melco Crown Entertainment in an attempt to limit exposure to Macau and pay down debt.

It cuts Crown’s stake in MCE from 34.3% to 27.4% and makes Melco International the single largest shareholder with 37.9%. When the sale is complete James Packer will step down as co-chair of Melco and be made deputy chair of the Macau operator.

The sale comes as Macau has seen a steady decline in revenues every month since June 2014. The shares are being sold at a price of $15.50 compared to their flotation price of $19 in 2007. Crown has said that it will initially use the proceeds of the sale to cut Crown’s debt. The company has had a difficult year due to its exposure to Macau, fast rising debt and planning delays to its new flagship Sydney casino project.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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