Crown Resorts sale of 198M shares to Melco to reduce debt

Company News

by David Chau

Crown Resorts Ltd (ASX:CWN) has signed a bilateral agreement with Melco International Development Ltd for the sale of 198 million shares in Melco Crown Entertainment Ltd, at $6 per share.

The company expects this deal to generate proceeds of around $1.6 billion, and reduce the company's net debt by $800 million.

Crown also plans to use the proceeds to fund a special distribution of $500 million – to enable a share buy-back of approximately $300 million.

Following this sale to Melco, and Crown’s Board deciding not to proceed with building the Alon project in Las Vegas, the company has also decided not to proceed with proposed demerger of its international investments.

Crown posted a net profit of $943.6 million at 30 June 2016.


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