Crown now owns just 11 percent
By this time next month, Melco Crown Entertainment Ltd. should be officially known by its new name, Melco Resorts and Entertainment. The change, subject to shareholder and regulatory approval, is expected to be complete by the end of March. The change reflects a fundamental shift in ownership of the global gaming operator.
According to GGRAsia, in December the Nasdaq-listed company informed the U.S. Securities and Exchange Commission it would soon reveal “a new corporate entity” following a series of sell-downs by Australian casino firm Crown Resorts Ltd.
That firm, headed by James Packer, now owns just 11.2 percent of the company; Hong Kong-listed Melco International Development Ltd., led by Lawrence Ho, is now the majority owner, holding 51.3 percent of shares, versus 37.9 percent before. Last month, 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.
An additional reason for the 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.”
