Ho now owns most of Melco
Shareholders of Melco Crown Entertainment Ltd. have approved a change of the company’s English language name to Melco Resorts and Entertainment. The Chinese language name will not change, reported GGRAsia, but the Nasdaq ticker symbol MPEL will soon switch to MLCO. The effective date of the change will be announced later.
In a press release, Melco said the move was “subsequent to Melco International Development Ltd.’s purchase of additional interest in and thereby assumed majority ownership of Melco Crown Entertainment in February 2017,” a reference to Lawrence Ho’s majority ownership in the global gaming and hospitality firm. Ho’s partner, Australian billionaire James Packer, recently sold down some of his stake, retaining 11.2 percent for his Crown Resorts and giving Ho 51.3 percent.
In February, Melco International said it acquired an additional US$1.1 billion worth of shares in Melco Crown to create new opportunities in Asia and Macau.
One reason for the name change may be to boost the company’s public brand. In a January note, brokerage Sanford C. Bernstein said Melco Crown “lacks the same recognition as some of its Macau competitors.” Another reason is Packer’s decision to distance himself from his international business. Following the October 2016 arrests of more than a dozen Crown Resorts staffers in China, Packer shelved plans to develop a casino resort in Las Vegas and says he will concentrate on his domestic interests.
