This morning the Crown Resorts Ltd (ASX: CWN) share price is trading lower after announcing that James Packer has sold down his holding in the company.
At the time of writing the casino and resorts operator's shares are down 3% to $12.51.
What was announced?
This morning Crown confirmed that CPH Crown Holdings, a wholly-owned subsidiary of James Packer's Consolidated Press Holdings, has entered into an agreement in relation to the sale of 19.99% of the issued capital of Crown to Melco Resorts & Entertainment Limited.
According to the release, the two parties have agreed on an aggregate purchase price of $1.76 billion, which is the equivalent of $13.00 per share.
When this share sale completes CPH Crown Holdings' stake in the company will be reduced to 26%.
CPH Crown Holdings has attempted to allay concerns over the sale by stressing that it "remains very optimistic about the future prospects of Crown and its world class resort facilities in Melbourne and Perth, as well as with the opening of the exciting new Crown Sydney at Barangaroo, scheduled for the first half of calendar year 2021."
James Packer revealed that diversification was the reason behind the share sale.
He said: "Crown has been a massive part of my life for the last 20 years and that absolutely remains the case today – my continuing Crown shareholding represents my single largest investment. I am still vitally interested in Crown's success as a world class resort and gaming business. The sale allows me to continue my long term involvement with Crown and at the same time to better diversify my investment portfolio."
Mr Packer also spoke highly about Melco Resorts & Entertainment Limited and its CEO Lawrence Ho.
He added: "I am thrilled Lawrence Ho and Melco have chosen to invest in Crown. Over the last 15 years Lawrence has built one of the world's leading resort and gaming companies. Melco's award winning resorts have set the standard internationally and are a testament to Lawrence's vision and efforts. Crown is a stronger company with Lawrence and Melco as a strategic shareholder."
Elsewhere in the industry today, the Star Entertainment Group Ltd (ASX: SGR) share price has edged lower and the SKYCITY Entertainment Group Limited (ASX: SKC) share price is up 0.4%.
