Melco International Development Ltd, the parent company of Hong Kong-based casino operator Melco Resorts & Entertainment Ltd, revealed that it has entered into a settlement agreement with the gambling regulator of the Australian state of New South Wales in relation to a case concerning Melco’s acquisition of shares in Crown Resorts Ltd in 2019.
Litigation Stemmed from 2019 Acquisition Deal
Melco International originally planned to acquire a 19.99 percent stake in Crown Resorts under a US$1.2 billion deal which would be completed in two installments.
The first installment saw Melco purchase almost a 10 percent stake in 2019 from Crown’s then-largest shareholder, James Packer. But in 2020, the company decided not to proceed with the previously agreed transaction and subsequently sold its Crown shares at a 37.3% discount.
Melco Settles ILGA Dispute
In the same year, Crown became the subject of a licence suitability inquiry in New South Wales. The probe also examined if the acquisition deal between Crown and Melco constituted a breach of the former’s restricted gaming licence for its Sydney casino. The Independent Liquor and Gaming Authority (ILGA) determined that Melco should pay AUD3.7 million (approximately US$2.4 million) over issues with its 2019 transaction with Crown.
In a filing to the Hong Kong Stock Exchange on August 31, Melco confirmed that the case has been settled, though it did not delve into the details of the settlement deed.
