Lawrence Ho’s skilled negotiating has sealed the share buy-out by Melco Resots & Entertainment in Crown Resorts, sending Melco’s shares up by over 25%.
Lawrence Ho Wins Investors Approval in Crown Buy-out
Lawrence Ho, Hong Kong casino boss, recently acquired Crown Resorts through Melco Resorts & Entertainment, buying from the now former owner James Packer. The news has made Crown’s shares jump, sending positive signs across the investment world, and yet a few challenges exist.
For starters, Mr. Ho’s lineage will slow down the go-ahead from regulators, as his father, Dr. Stanley Ho, is not allowed to have association with any of the gambling properties run by his son. With this being said, Lawrence is buoyant about the future of Crown Resorts and investors have responded well to the news as well.
Perpetual, an investment firm, has landed its support for the 19.99-per-cent-stake buyout that Melco Resorts & Entertainment concluded recently. Speaking to the Australian Financial Review, Garry Laurence, fund manager at Perpetual, shared his enthusiasm to see both companies collaborate, describing the future as holding “considerable opportunities”.
Crown’s Macau Roll-Out is Welcomed
Judging by Laurence reception, Crown Resorts will have no difficulties to operate in both Australia and Macau. Furthermore, Mr. Ho appears to be a figure of respect among investors, giving him additional clout to sway opinions and accumulate investment.
Melco also holds big stake in collaborating with Crown. Australia is a vibrant market that offers plenty of opportunities and Crown is preparing to roll out a US$2.2 billion project right in the heart of the country in Sydney.
Meanwhile, Mr. Ho seems intent on creating a diverse portfolio that holds assets both in Macau and the expanding Australian market. With the latest investment steps undertaken by Mr. Ho, Melco’s share price jumped by 25.4% at $23.59.
This expansion bid comes at a time when China is looking closely at Macau’s junket and VIP operators. Most recently, Suncity Group was accused in Chinese media that it had been diverting capital and customers to offshore casinos from Macau. The company has denied the allegations since.
While Melco Resorts seems to be in good rapport with the Chinese government, Mr. Ho may be pre-emptively diversifying his business.