Crown Resorts will use the proceeds from the sale of its remaining shares in Melco Resorts & Entertainment to pay off debts, it announced on Tuesday.
Under a repurchase agreement with its former Macau partner, Crown has agreed to sell 165.3 million Melco Resorts ordinary shares – representing 11.2% of Melco Resorts of all ordinary shares US$7.04 per share – in a deal worth US$987 million.
In a statement, the company said the windfall would, “initially be used to reduce Crown Resorts’ net debt.” The repurchase agreement is expected to be completed on 15 May 2017.
Under the conditions of the agreement, Crown Resorts will no longer hold an interest in Melco Resorts. the Shareholders’ Agreement between Crown Acquisitions Inc (CAI) and Melco International Development Limited will terminate and the company will no longer be entitled to a seat on the Melco Resorts Board , with Mr Robert Rankin to resign as a non-executive director of Melco Resorts.
A separate Shareholders’ Agreement between CAI and Melco International relating to the Japan market will also terminate upon completion of the Repurchase Agreement.
Melco Resorts Chairman and CEO Mr Lawrence Ho said in a Melco statement on Monday, “It is with great pride that I look back over the past decade and recognize all that we have achieved in partnership with Crown Resorts at 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. 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.”
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