What: According to reports from both the Fairfax and News Corp press, billionaire James Packer has snared 18 million shares in Crown Resorts Ltd (ASX: CWN) at $12 a share in an aftermarket deal that was priced at a small premium to the $11.66 closing price of the stock.
The acquisition implies a total purchase consideration of around $200 million and takes Packer's shareholding in the international casino group to about 53%.
So What: There is an old saying amongst market participants with regards to company insiders which states:
"There are many reasons company insiders sell a stock, but only one reason they buy"
Given the intimate knowledge and insights Packer has of Crown's operations no doubt some investors will be sitting up and taking notice of his decision to acquire more stock especially considering the 17% decline in share price over the past 12 months.
The circa $200 million "top-up" must, however, be kept in context. With an estimated net worth (according to Forbes) of $3.8 billion this purchase represents less than 6% of Packer's purported net worth and could equally be a strategic move to take his shareholding comfortably above the 50% control level as it is a bet on value.
Now What: For exposure to the Chinese market of Macau, Crown is the obvious investment for Australian investors to make.
However for exposure to the Asian gambler market, there are alternatives.
Firstly, VIP clients regularly travel to flagship casinos to play. In this respect, Echo Entertainment Group Ltd (ASX: EGP) receives its share of the lucrative Chinese gambling dollar thanks to its venues in Sydney, Brisbane and Gold Coast.
Likewise, lesser known casino owner Donaco International Ltd (ASX: DNA) operates casinos in Vietnam and Cambodia which cater to customers from China and Thailand respectively.