Home » Melco Resorts Puts Off Acquiring Crown Shares Following Investigation into the Deal
Melco Resorts Puts Off Acquiring Crown Shares Following Investigation into the Deal
Recently updated on August 28th, 2019
Melco Resorts and Entertainment, an Asian casino operator, has put off the purchase of a large portion of shares in Crown Resorts. This follows an announcement by the NSW, New South Wales, which is the governing body for Independent Liquor & Gaming that it is investigating the business deal. On Wednesday, Melco Resort announced that they have come to an agreement with Crown Holdings to put the brakes on the deal. They stated that the acquisition has been put off from September 30th until 60 days after the inquiry has concluded.
Melco Resorts revealed that in May it had already reached an agreement Crown Holding, owned by James Packer. The agreement stated that for Melco to obtain a 19.99% stake in Crown Resorts they would have to pay a total amount of AU$1.76 billion (NZ D$1.87 billion). The deal was set to be completed through two payments with one taking place in June and the other by September. Due to the recent NSW investigation the other payment, which is the second one, has now been delayed.
Details of Melco Resorts and Crown Resorts Deal
In their agreement, both Melco Resorts and Crown Resorts have agreed to have the deal sealed by May 31st 2020. According to some reports, the purchase agreement can be extended by an additional six months. At the moment, the first batch of shares, which amounts to 67, 675,000, was purchased by Melco giving the company a 10% stake in Crown. The first part was completed on June 6th 2019.
It has now emerged that if the results of the investigation are undesirable by Melco or Crown then the deal may be abandoned.
Reason for Inquiry
The NSW Authority for Independent Liquor & Gaming is said to be investigating the agreement between Melco resorts and Crown Resorts on the basis of Melco Chairperson having links to Stanley Ho, known for owning 19 casinos in Macau. This is because Crown Resorts is banned from doing business with Stanley Ho.
Taralynn Engels is a seasoned casino news writer with a passion for keeping her readers up-to-date with the latest happenings in the gambling industry. With over five years of professional writing experience, Taralynn has developed a deep understanding of the casino industry and a knack for delivering engaging and informative content. Aside from her in-depth knowledge of the casino industry, Taralynn possesses excellent writing skills that allow her to craft captivating narratives that keep readers hooked until the last word. Her ability to simplify complex concepts and present them in an accessible manner guarantees that her articles are enjoyed by both seasoned casino enthusiasts and newcomers alike.
Recently updated on August 20th, 2019It seems that the Waipā District Council does not believe that the sinking lid rule should be added to the active gambling policy in the municipality. This comes after a committee meeting was held to determine whether or not amendments should be made to the current governing policy. Only two […]
Recently updated on April 24th, 2019Although PokerStars is undoubtedly one of the most famous poker gambling sites in the US, they have been looking to branch out towards the sports gambling arena. The online poker site had hoped that the New Jersey Division of Gaming Enforcement (DGE) would not notice that they accepted bets on […]
Recently updated on August 21st, 2018At this year’s Australasian Gaming Expo, it was revealed that pokies contribute roughly AU$8.32 billion (NZ$9.18 billion) to the economy of Australia. At least AU$5.5 billion (NZ$6.07 billion) went to tax revenues from leading Pokie operators. The survey was conducted on behalf of the Gaming Technologies Association (GTA), who represents […]
Recently updated on July 12th, 2019The new Advertising Gambling Code was announced among a flurry of gambling-related reforms. The new gambling code, which affects both casino website operators and NZ online gamblers, will start being enforced on 1 August 2019. Released by the New Zealand Advertising Standards Agency (ASA) in April, the code sets a […]
Recently updated on August 8th, 2019Microgaming, in partnership with Foxium, a software provider for mobile and web-based casino games, has released a new pokie – Boom Pirates. In the coming five weeks, selected Microgaming casinos across New Zealand will offer customers the opportunity to test the pokie in real and free money modes before it […]
Melco Resorts and Entertainment, an Asian casino operator, has put off the purchase of a large portion of shares in Crown Resorts. This follows an announcement by the NSW, New South Wales, which is the governing body for Independent Liquor & Gaming that it is investigating the business deal. On Wednesday, Melco Resort announced that they have come to an agreement with Crown Holdings to put the brakes on the deal. They stated that the acquisition has been put off from September 30th until 60 days after the inquiry has concluded.
