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Crown Resorts debt & dividend payment nets Packer AUS $600 million

Crown Resorts debt & dividend payment nets Packer AUS $600 million

The continued restructure of Crown Resorts and its business assets has earned Australian casino and leisure magnate James Packer approximately AUS $600 million (£375 million) in cash last week.

Packer’s personal wealth vehicle Consolidated Press Holdings (CPH) informed the Australian ASX that it had sold AUS $101 million of ‘debt securities’ in Packer’s Crown Resorts enterprise.

Further to the debt securities payment, Packer who owns 48% of Crown Resorts equity (largest shareholder) would receive an additional AUS $489 million compensation generated from a 30c dividend and 80c special payment relating to Crown’s sale of Asian business subsidiary Melco Crown Entertainment (MCE).

Last year, Crown governance detailed that the company would undertake a ‘conservative strategy’ focusing development on its home casino assets of Perth and Melbourne. Furthermore, Australian business news sources report that Packer wants to reduce Crown’s current debt of $1.7 billion.

During 2016, Packer would significantly reduce Crown’s 38% equity in MCE to circa 22%, undertaking two tranches of shares sales in May for AUS $800 million and in August for a further $450 million.

The management of CPH has stated that Packer remains ‘deeply committed’ to Crown Resorts’ enterprise, despite Packer no longer being Chairman of the company. Focusing on the home projects of Perth and Melbourne properties, Crown will undertake a marketing overhaul and cost saving strategy.