Crown Resorts Ltd. To Change Its Plans Following The Situation in China
Crown Resorts Ltd. had great plans announced for its international businesses. The Aussie casino operator was planning to cleave off big parts of its business, internationally, by April. These plans have been delayed, mainly because of what is happening to the company's employees in China. This is because the Chinese authorities have arrested 18 of its employees on the Chinese mainland.
Crown Resorts Ltd. Plans for Its International Businesses
As per reports from The Australian, one of Australia's top newspapers, there was a proposal that was publicized in June. This proposal was going to witness Crown Resorts Ltd. spinning off its 27% interest in Melco Crown Entertainment. It would also spin fifty percent holding in its UK casino company Aspers. The spun-off enterprise was also going to contain the company's investments in the Alon Las Vegas, as well as twenty percent holding in its Nobu restaurant chain. Last but not least, it also included its interest in Caesars Entertainment Corp., all of which was going to be independently listed.
Crown Resorts Ltd., which has James Packer, the entrepreneur as a major shareholder, explained more of the plan. This plan was to call for the retain of 51% of the interest in the new entity that is going to be separately listed, in addition to its London Casino, Crown Aspinall's. This plan was thought to be in part, an attempt by the Aussie firm to insulate its profitable business domestically, from the other underperforming businesses that are located in Macau. Macau, following the crackdown on gambling, is expected to have aggregated VIP revenues. This is because, according to reports, these revenues are expected to finish the year with 15% less revenues than last year.
Plans Delayed to Take Longer than 9 Months
The plans were expected to take 9 months. Nonetheless, according to the newspaper, the plan is going to take longer than the expected time. This was following the statement by the CEO of Crown Resorts Limited, Rowen Craigie. This is following the arrests that occurred in October, under “gambling crimes”. These arrests included 18 employees who work for Crown Resorts Ltd. These arrests included the VIP International Executive General Manager, Jason O'Connor. It also included Pan Dan and Jerry Xuan, who are Aussie nationals.
On the other side, contrary to what people expected, the reports of the arrests somehow had positive effect on the share prices of the company. This is because the share price of Crown Resorts rose from $16 to more than $19. In addition to that, the company also received a needed boost. This boost came with the news that the gaming machine expenditure of Victoria for October increased by 2.1% when compared to same period last year.