Packer focuses on the homefront
A shakeup at Crown Resorts has seen majority shareholder James Packer return to the board of directors, Robert Rankin step down from his role as board chairman, and John Alexander assume Rankin’s position.
Rankin, whose exit will be effective February 1, will continue as a director of Crown and also as a director of Melco Crown Entertainment, the company’s international casino joint venture with Lawrence Ho’s Melco International Development, reports CalvinAyre.com. He has also stepped down as CEO of Packer’s Consolidated Press Holdings Pty Ltd.
The executive shuffle is a clear sign that Packer, who resigned the board in December 2015 to concentrate on Crown’s international interest, is now prepared to redirect his focus to his businesses at home. Bloomberg News observes that Crown has “seen its international ambitions clipped after a Chinese clampdown put overseas revenue at risk.” In the past year, the company has cut its stake in Macau casino operator Melco Crown Entertainment Ltd. by more than half and shelved a proposed development in Las Vegas. One publication called 2016 Packer’s “year in hell,” capped by the detention of 18 Crown employees in Mainland China for alleged “gambling crimes.”
“Crown has some really big hurdles to jump over in the next few years,” said Evan Lucas, a market strategist at IG Ltd. in Melbourne. “It’s known that Packer has not been impressed with what has happened since he stepped aside” from the board.
Crown continues to pursue a planned A$2 billion (US$1.5 billion) VIP gaming resort in Sydney.
According to the Herald Sun newspaper, Rankin called Crown Resorts “an outstanding company.”
“I have relished the opportunity to guide it during a rapidly changing period,” the ousted CEO said in a statement. “The next stage of development of Crown Resorts will be rightfully more focused on its outstanding Australian assets and led by John Alexander, Crown Resorts has a very strong team in place to do that.”
In a statement, Alexander said, “I am very pleased to be taking on the chairmanship of Crown Resorts at this time, particularly given our recent announcements aimed at maximizing shareholder value. Crown Resorts is and will remain one of Australia’s most valuable tourism assets with its world-class resorts in Melbourne and Perth, and construction in Sydney is now underway. I am also excited about our plans to continue building our wagering and online businesses.”
CPH plans to nominate new CEO Guy Jalland to the next vacancy on Crown’s board or else grow the board altogether pending shareholder approval, reported CalvinAyre.com.
