Crown uses share proceeds to reduce debt

Australia-listed Crown Resorts says it intends to initially use the proceeds of its A$1.34 billion (US$987 million) share sale to reduce net debt.

The casino operator on Tuesday announced to the Australian Stock Exchange that it had agreed to sell all 165.3 million ordinary shares (11.2 percent of total shares) in Melco resorts for a price of US$7.04 per share.

Upon completion of the transaction, which is expected to occur on May 15, 2017, Crown Resorts will no longer hold any shares in Melco. The move also nullifies any shareholder arrangements between Melco International Development Ltd and Crown Resorts Ltd, including the joint venture arrangements for the Japan market.

Crown’s sole remaining nominee director, Mr. Robert Rankin, will resign as a non-executive director of Melco.