Crown spells out buy-back details
Crown Resorts says it will raise approximately $500 million by buying 42.9 million of its ordinary shares.
The 42.9 million shares will be 5.89 per cent of its issued capital, and Crown will pay a value set at Friday’s closing price of $11.65 a share.
“The ultimate buyback size will depend on market conditions and available liquidity,” Crown said.
The buyback will allow James Packer to grow his cash reserves with his private investment vehicle Consolidated Press Holdings, which has a 48 per cent stake in Crown, advising the casino company it might look at selling some, or all, of the subordinated notes it holds.
As part of the move to build Mr Packer’s cash reserves, Consolidated Press has also sold out of Noni B.
Mr Packer had a 10 per cent stake in Noni B last August after it bought Pretty Girl Fashion. But in a statement to the stock market yesterday, Noni B said Consolidated Press had sold its stake “following the successful integration of the Pretty Girl and Noni B businesses and a strategic refocus”.
Crown announced on-market share buyback on February 23.
That was when the company said it would not proceed with a partial float of some of its Australian hotels and associated properties.
Crown said it had received the required regulatory approvals and intended to commence the on-market share buyback on or after March 20.
The news also coincides with the warning from the former chair of the NSW Independent Liquor and Gaming Authority that Crown’s Australian casino licences would have to be reviewed if any of its staff under arrest in China are convicted of an offence.
Fourteen Crown staff, including three Australians, are in detention in Shanghai following a crackdown on gambling related crime.
Mr Sidoti told Four Corners that convictions for Crown’s staff “would place an authority like a regulatory body in Australia on notice and require further inquiries to be made.”
by Leon Gettler, March 7th 2017
