James Packer’s CPH declines results briefing from Crown Resorts
Major Crown shareholder James Packer declined the offer of a results briefing from the casino group, even though it swung to a loss and axed a lucrative dividend flow.
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Major Crown Resorts shareholder James Packer is keeping his distance from the company he once chaired, declining to receive a full-year results briefing from Crown even after it swung to a loss and axed the dividend flow that forms a large part of his income.
CEO Steve McCann said the company offered a customary briefing to Consolidated Press Holdings (CPH) – through which Mr Packer holds 37 per cent of Crown – via CPH’s adviser MA Financial Group, but the offer was not accepted.
“We obviously recognise that CPH is a major shareholder,” Mr McCann told the media on Monday.
“As part of our full-year results processes we’ve offered meetings for all of our major shareholders. We don’t have a meeting with CPH booked.
“CPH has chosen not to take the meeting at this point in time, so clearly that’s their decision.”
Crown announced a $261.6m full-year loss on Monday, its second ever loss in its 14-year history as an ASX-listed company.
Crown also announced it had reached a deal with its bankers to suspend dividend payments until after the first half of the current financial year, or longer if royal commissions into the company in Victoria or WA decide to revoke the group’s casino licence in their state.
It means Mr Packer will have to last more than two years without a dividend payout, with Crown last distributing profits to shareholders in April of 2020, before Covid-19 disruptions smashed cashflow.
Crown’s regular practice of paying 30c dividends twice yearly formed an important part of Mr Packer’s income, and would net him around $140m had they been able to pay both dividends for the 2021 financial year.
CPH’s ability to communicate with Crown Resorts has been limited by an agreement it struck with the NSW Independent Liquor and Gaming Authority (ILGA) in the aftermath of the NSW Bergin Inquiry, which temporarily revoked Crown’s NSW casino licence in February.
As the Bergin Inquiry slammed shareholder protocols that allowed Crown executives to pass on confidential financial information to CPH, the ILGA agreement prevents CPH from initiating discussions with Crown, except through public forums.
However, it does not prevent Crown from sharing information with CPH in line with its duties as a public company.
But it is understood CPH takes its obligations seriously, and did not take up the offer for a meeting as it sees no need to have dialogue with Crown over the results.
On Monday McCann said he had not had any contact with CPH since accepting the CEO role in May.
“We haven’t had direct dialogue. I haven’t had any dialogue with CPH.”
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Originally published as James Packer’s CPH declines results briefing from Crown Resorts
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