Melco bails on Crown Resorts stake purchase

Saturday, 10 Feb, 2020 0

Asian casino group Melco Resorts has abandoned plans to up its stake in Australia’s Crown Resorts, blaming the coronavirus epidemic.

It pulled out of a $591million deal to increase its stake to19.99%, citing the fallout from coronavirus.

The gaming industry is currently at a standstill in Macau where Melco has a major presence.

The Macau government ordered all casinos and other entertainment centres to close for two weeks to help curb the spread of the virus.

"As a result of this decision, Melco will not pursue its planned investment in Australia for the second tranche of shares in Crown Resorts Limited. At this time, its capital needs to be deployed on core assets," a Melco statement said.

Melco has been under investigation in Australia by gaming regulators which had held up the transaction for the second tranche of shares.

The father of current CEO Laurence Ho has been the subject of multiple investigations over links with organised crime.

Meanwhile, Wynn Resorts says the Macau casino closure is costing the company about $2.6 million a day.

Wynn has a workforce of more than 12,000 people in Macau.

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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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