Melco ends partnership with Crown

o Resorts and Entertainment announced yesterday the conclusion of its joint venture partnership with Australia-based Crown Resorts.

In a press release, the company revealed it would be conducting a secondary sale of Crown’s 11.2% stake in the company, as well as a concurrent repurchase.

The Repurchase Agreement is expected to be completed on 15 May 2017.

“This transaction brings to conclusion the world’s most successful global gaming partnership,” said Lawrence Ho, Melco Chairman and CEO.

“Despite our positive history with Crown, I made the strategic decision to terminate the joint venture arrangement and allow Melco to pursue Japan alone.”

In a Tuesday release, Crown Resorts made no reference to why it had decided to fully dispose of its stake in Melco Resorts.

However, Crown also stated that is was expecting to “generate net proceeds of approximately $987m […] which will initially be used to reduce Crown Resort’s net debt.”

Crown’s sole remaining nominee director, Robert Rankin, will resign as non-executive director of Melco.