Crown Resorts’ stake sale to Melco faces scrutiny

Friday, 09 Aug, 2019 0

Melco Resorts & Entertainment’s stock purchase in Crown Resorts will get close scrutiny from an Australian gaming watchdog.

The NSW Independent Liquor & Gaming Authority confirmed it is looking into the deal to acquire a 19.99% stake in Crown worth about AU$1.76 billion.

Melco revealed in May it had reached agreement to buy the stake.

The regulator will now study the transaction in detail in light of recent damaging media reports.

Reports allege Crown had close links with Asian crime syndicates and enabled money laundering at its casinos.

The regulator has issued notice to ‘relevant Crown parties and other parties’ demanding documents relating to the transaction.

Crown is currently forbidden from dealings with dozens of companies and individuals, and one of these is Stanley Ho, due to alleged decades-long links with criminal gangs.

Stanley Ho’s son Lawrence is now the chief at Melco and has long said the business is ‘independent of my father’s interests.’

Still, analysts expect the review will take several months, while investigations into allegations recently aired against Crown could severely delay or even possibly scupper the proposed deal.

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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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