Crown Resorts Initiates Complete Withdrawal from Macau, Sells Remaining Shares to Melco International
Crown Resorts will divest itself of its shares that are remaining Melco Resorts and Entertainment, the organization that was, until last month, known as Melco Crown. The move completes James Packer's total withdrawal from Macau.
James Packer's timing had been off on Macau, but the China arrests were the nail that is final the coffin. Could Crown's current strategies be part of a plan to move into a completely new market.
The news comes almost exactly one after Packer's Crown Resorts made the shock decision to cut its stake in the company it had formed jointly with Lawrence Ho's Melco International from 34.3 percent to 27.4 percent year. This was just five months after the opening of Melco Crown's long-awaited $4.5 billion Studio City resort.
In hindsight, the timing could hardly have already been worse. After almost two years of tumbling revenues in Macau, Crown Resorts desired to rein in its expansion that is international and its exposure to the gambling hub to be able to concentrate on projects closer to home.
Timing is Everything
Packer's Asian dream had failed, shattered by Beijing's anti-corruption drive of 2014. The Melco Crown properties, cooked up in a climate of apparently unassailable success for Macau, the other regarding the fastest-growing economies on earth, were not providing the returns he expected.
'we don't think any of the operators could have predicted wha (mais…)